Proposed Unrealized Capital Gains Tax Could Harm Cryptocurrency Investors

According to BlockBeats, on October 3, Among Us CEO and co-founder Zac Townsend expressed concerns that the proposed unrealized capital gains tax by Harris would negatively impact cryptocurrency investors. The core of the unrealized capital gains tax proposal is to require individuals to pay taxes on the appreciation of their cryptocurrency holdings, even if they have not sold any assets. Townsend highlighted that this approach is fundamentally different from traditional tax principles, which only apply to gains realized upon the sale of assets. Townsend warned that this plan could have devastating consequences for cryptocurrency investors and the broader economy. It could undermine the intrinsic value of cryptocurrencies as a store of value not controlled by any single government. The tax could incentivize large investors to sell off assets to pay the tax, leading to a decrease in cryptocurrency prices and affecting the returns of everyday investors, including those who have invested small amounts in hopes of improving their financial situation.