with the tax news flying around , the crypto market was really hit hard and still crawling from recovery. if finally validated, what effects will it have on crypto markets and its traders. please share your views and thoughts.
As long as they are not going to tax unrealized capital gains, we should be fine. The proposal is to make long term capital gains tax equal to the income tax. Now what is going to happen is that most of the investors will postpone their plans to sell cryptocurrency, if they previously had such ideas. This should actually result in an increase in the exchange rates, since a supply crunch will be created as a result.
I am more worried about the demand to tax capital gains that are not realized. This proposal was first put forward by Ron Wyden (Senate Finance Committee) a few years back and now Biden seems to be considering it.