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G7: Biden Refuses to Sign a Debt Agreement That Protects Cryptocurrency Dealers

2023-05-22 15:19:40

President of the United States Joe Biden voiced opposition to a debt ceiling agreement that would purportedly help cryptocurrency dealers.


President of the United States Joe Biden voiced opposition to a Republican leaders' debt ceiling deal that would purportedly benefit cryptocurrency dealers. Biden allegedly referred to the Republican proposals as unacceptable in a news conference while at the Group of Seven (G7) Summit.

"I'm refusing to sign on to a deal that puts the security of nearly 1 million Americans needing food assistance while shielding wealth tax escapees and cryptocurrency dealers."

The so-called safeguards for cryptocurrency traders mention tax-loss harvesting. The White House and Republican leaders are now in talks on stopping the system for Bitcoin transactions, according to the Washington Post.

Investors utilize the concept of crypto tax-loss harvesting to lower their overall tax obligations. To counterbalance financial gains from Bitcoin profit, it entails selling a cryptocurrency at a loss. Assets must be sold, and the money utilized to buy a comparable asset within 30 days of the sale in order to qualify for a loss. The technique is accessible for stocks and other types of assets as well.

How Will The US Debt Ceiling Situation Affect Bitcoin?

The White House presented Republicans a similar idea that prohibits investors from postponing taxes on real estate swaps in addition to limiting tax-loss harvesting for cryptocurrency. For the United States government, these reforms would increase tax income by around $40 billion.

Republicans oppose the ideas, the Post was informed by a source. Invoking the Biden administration's excessive spending during the epidemic, House Speaker Kevin McCarthy asserts that the increase in the nation's debt is a spending problem, not a revenue problem. In the meanwhile, the White House says tax cuts from past administrations are to blame for the debt problem, since they had a substantial impact on revenue.

Republicans propose cutting $4.8 trillion in expenditures, which would have a direct impact on the budgets of government agencies. The United States might default as early as June 1 if Congress fails to raise the debt ceiling. According to reports, Biden would call McCarthy while on route from Hiroshima to Washington, D.C. The debt ceiling, which has been in place since 1917, is the cap Congress has placed on the amount of money the federal government may borrow to cover its obligations.

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