President Biden Rejects Loan Deal Favorable To Crypto Traders

Speaking on the final day of the G7 summit in Japan, US President Joe Biden addressed the ongoing debt default talks, saying he would not withdraw from a deal that favors tax cheats and crypto traders.

“I am not going to agree to a deal that protects wealthy tax cheaters and crypto traders while risking food aid for nearly a million Americans,”

The comments come with Republican leaders opposed to a bipartisan debt limit agreement that the president alleges would benefit crypto traders, among others.

BREAKING: President Joe Biden speaking on the final day of the G7 summit

“I am not going to agree to a deal that protects wealthy tax cheaters and crypto traders while putting food aides at risk.”

📺 Sky 501, Virgin 602, Freeview 233 & YouTube pic.twitter.com/PIf0O5tKXq

— Sky News (@SkyNews) May 21, 2023

No love for crypto from Biden

Protection for crypto (and stock) investors revolves around tax loss harvesting. It is a process in which an asset is sold at a loss and immediately repurchased so that it does not leave the investor’s portfolio, but at a lower profit on purchase. This will result in reduction of taxes due to offsetting of capital gains.

The two sides of the political divide in the US cannot come to an agreement on negotiating the federal budget and debt ceiling. Without a new budget deal, the US could run out of cash as soon as next month National debt skyrockets toward $32 trillion.

President Biden came down hard on “wealthy crypto investors” earlier this month as he planned to close tax loopholes.

Americans and the crypto industry are hopeful that a more industry-friendly administration and president will be elected when the country votes in the November 2024 general election.

Until then, the war over crypto is likely to continue, as will an exodus of talent and innovation to friendlier foreign jurisdictions.

Additionally, the Biden administration has also proposed a 30% energy tax on crypto miners which could further increase the ongoing exodus.

Although there is a ray of hope. Last week at the Miami Bitcoin Conference, presidential candidate Robert F. Kennedy voiced his support for the bitcoin and crypto industry in the United States.

crypto market outlook

Crypto markets fell into the red during the Asian trading session on Monday morning. As a result, the total capitalization has fallen by 1.7% to $1.16 trillion at the time of writing.

Bitcoin was down almost 2% on the day to $26,633, meanwhile, Ethereum was down 1.1%, again falling below $1,800.

Overall, the crypto market is still choppy and range-bound on the monthly view, having retraced mid-April 2023 to current levels.