President Biden wants to go after crypto wealth as a way to help close the budget gap, figuring Uncle Sam could net $11 billion in new income through 2032 by modernizing accounting rules around the asset class. The proposed rules target offshore tax evasion by imposing cross-reporting agreements with foreign financial jurisdictions on crypto holdings much like those already in place for traditional investment assets. Another key change is shifting taxation of crypto to a mark-to-market system, which means that when the value of the underlying asset goes up, it is treated as actual income. Not all digital assets will qualify for the treatment, only those determined to have adequate trading activity, as CoinDesk notes. Last year, the digital asset industry fought bitterly with Congress over similar issues. . . .
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