During his speech at the G7 summit in Japan, U.S. President Joe Biden made it clear that he would not support a debt default deal that protects tax evaders and crypto traders.
“I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk for nearly a million Americans,”
The President opposes a bipartisan agreement with Republican leaders as he believes it would benefit wealthy crypto traders and others.
BREAKING: President Joe Biden speaking on the final day of the G7 summit
“I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistants at risk.”
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— Sky News (@SkyNews) May 21, 2023
No Love for Crypto From Biden
Crypto and stock investors benefit from tax loss harvesting, which enables the offset of capital gains by selling an asset at a loss and repurchasing it immediately. However, the protection for such investors remains a contentious issue between the two parties in America, as they are unable to reach an agreement on negotiations over the federal budget and debt ceiling. This disagreement could result in the U.S. running out of cash as its national debt approaches $32 trillion.
President Biden plans to close the tax loopholes and has made his disdain for “wealthy crypto investors” clear. The industry and Americans remain hopeful that a more industry-friendly administration and President will be elected in the November 2024 general election. Until then, the war on crypto will likely continue, and the exodus of talent and innovation to friendlier overseas jurisdictions could persist. Additionally, the Biden administration has proposed a 30% energy tax on crypto miners, which could further drive the ongoing exodus.
There is a glimmer of hope, though, as Presidential Candidate Robert F. Kennedy pledged his support for Bitcoin and the crypto industry in the United States at the Miami Bitcoin conference last week.
Crypto Market Outlook
The Monday morning Asian trading session saw the crypto markets fall by 1.7%, which caused the total capitalization to drop to $1.16 trillion. Bitcoin was down by almost 2% to $26,633, while Ethereum had dipped below $1,800 again, shedding 1.1%. Overall, the crypto markets are still choppy and range-bound on the monthly view, having retreated from their mid-April 2023 highs to current levels.