Many cryptocurrencies — Chainlink (CRYPTO:LINK), Algorand (CRYPTO:ALGO), and Ripple’s (CRYPTO:XRP) XRP token among them — suffered significant losses on Monday on the heels of new tax rules proposed by Democrats in the U.S. House of Representatives. Those tokens were down roughly 5.7%, 3.3%, and 4.1%, respectively, as of 4:30 p.m. EDT.
As part of the massive infrastructure bill working its way through Washington, House Democrats have put forward a series of potential tax code changes that include raising the top capital gains rate from 20% to 25% and altering classifications that allow crypto traders to take advantage of wash-sale tax law loopholes. The proposed changes would likely result in higher tax liabilities for short-term, high-volume cryptocurrency traders.
