President Biden recently said he will work to make the tax system fair: rules, taxes, and closing the “loopholes” for cryptocurrency traders.
President Biden made a promise regarding the crypto industry and the traders that are part of it, ahead of his upcoming presidential campaign.
According to the current President, in fact, he will strive to make the current tax system fair by closing tax loopholes for cryptocurrency traders and imposing new taxes. President Biden previously tweeted that these loopholes were costing the government $18 billion in lost tax revenue. In fact, for some time, cryptocurrency traders have been able to avoid taxes by exploiting this loophole.
As reported in a transcript released by the White House, the president said on Wednesday that they “will make the system fair by closing the loopholes for cryptocurrency traders and hedge fund managers.”
What Are the “Crypto Loopholes” Biden Refers to?
In May, President Biden hinted that he would close the loopholes in the cryptocurrency sector. In fact, on his official Twitter account he had already stated the following:
“We don’t have to guess what MAGA House Republicans value. They are telling us.”
All of this therefore confirms that, according to Biden, Congress should close “tax loopholes that favor rich cryptocurrency investors,” estimating that these loopholes have led to a loss of approximately $18 billion in tax revenue.
Additionally, this view was one of his exceptions regarding a debt deal during the US default crisis. The crypto “loophole” in question likely refers to the ability of traders to sell and repurchase cryptocurrencies in short periods of time, thus avoiding the application of higher tax rates.
Either way, President Biden is likely to further elaborate on his plan to regulate cryptocurrency merchants more strictly during the course of his campaign.
Following President Biden’s comments, the price of Bitcoin fell 1.3%, falling to just under $30,000. Currently, BTC represents more than half of the total cryptocurrency market. However, since then, the price has risen back above $30,500.
President Biden’s Crypto Speech at the G7 Summit
During his speech at the g7 summit on budget negotiations, President Biden addressed the issue of cryptocurrencies, reporting that he met with all four congressional leaders before leaving for the summit and stressing the importance of a bipartisan deal as the only way forward.
In addition, he highlighted his commitment to submit a proposal to cut spending for more than one trillion dollars. Regarding other proposals, Biden said that many of them are completely unacceptable.
Additionally, a video posted by Sky News shows President Biden speaking about cryptocurrencies by saying the following:
“I will not accept a deal that protects tax evaders and cryptocurrency traders at the expense of food helpers.”
Biden’s statement comes at a time when US regulators are standing still. increase control in the cryptocurrency sector. Therefore, it is very likely that there will not be a debt agreement that protects crypto investors in the country.
The President said that he would not accept a tax deduction of 30 billion dollars for the oil industry. He also spoke about the $200 billion profit the industry made last year, arguing that millions don’t need a $30 billion stimulus at the cost of the lives of 21 million Americans.
By Audy Castaneda
