For a long, long time, the cryptocurrency industry had hoped that one day, the United States of America would recognize cryptocurrencies. However, it was just a dream for cryptocurrencies, which was far from fulfillment, at least during Donald Trump’s tenure as the President of the US.
As Joe Biden won the presidential election in November 2020, and the cryptocurrency community had hoped things would take a positive turn. Alas, Donald Trump had already sprinkled the beans of destruction for cryptocurrencies in the country.
One of the major setbacks for the entire crypto-verse was the lawsuit that the Securities and Exchange Commission had filed against Ripple Labs (XRP) back in December 2020.
However, Joe Biden’s selection as the 46th President of the United States did give the cryptocurrency industry hope. Finally, the cryptocurrency industry could have a breather and start thriving in the country.
This is exactly what happened as many major companies in the United States started investing in cryptocurrencies. The industry has been legalized in several cities in the United States including Miami City where the citizens can get their salaries in Bitcoin (BTC).
Despite all the progress, the cryptocurrency industry has now received a low blow from the current administration. According to the reports, the low blow received by the crypto-industry is in the form of tax regulations on cryptocurrencies.
It has been reported that Joe Biden will soon be making an announcement surrounding new laws and regulations for the taxation process on cryptocurrencies.
It is to be expected that the new law may take place on the capital gains for the cryptocurrency investors and the tax percentage may rise depending upon the gains.
It has been reported that with the implication of the new tax regulations, the cryptocurrency community earning more than $1 million through cryptocurrency investments may be entitled to pay huge taxes.
The report suggests that for such investors making profits higher than $1 million, the tax rate would be 39.6%. This means that the tax rates for cryptocurrency investors in the country have been doubled.
So far, the reports have received positive, negative, as well as mixed reviews from the investors and analysts. Some see it to be an opportunity that would open more doors for the US investors to more products in the crypto-verse.
On the other hand, some view it as a plan that would never come to fruition. They are stating that this proposal would receive a huge pushback from the House as well as the cryptocurrency communities in the county.
The major concerns are that the cryptocurrency investors in the United States were already complaining about having to pay high taxes on cryptocurrencies if they held them for more than a year.
If the new regulation gets passed and implemented, it would be the end for the small-time cryptocurrency investors.