Key takeaways:
- The US President criticises cryptocurrency and declares that he “won’t Accept A Debt Deal That Protects Crypto Traders”
- Biden spoke about the budget negotiations on the final day of the G7 summit in Japan, calling the terms put out by Republican leaders “unacceptable.”
During the G7 summit, President Joe Biden stated that prior to his departure, he held discussions with all four congressional leaders and they reached a consensus that progress can only be made through a bipartisan agreement.
Biden expressed his opposition to the proposals put forth by Republicans, deeming them unacceptable. Specifically addressing cryptocurrencies, Biden asserted that he would not support a debt deal that shields affluent tax evaders and crypto traders while jeopardizing food assistance for millions of Americans.
Biden reportedly referred to the Republican proposals as “unacceptable” in a press conference while at the Group of Seven (G7) Summit.
“I’m not going to sign on to a deal that shields wealth tax evaders and cryptocurrency traders while putting the safety of nearly 1 million Americans receiving food assistance.”
It is important to note that To avoid defaulting, the US government has until June 1st to come to a deal on the debt ceiling. US Treasury Secretary Janet Yellen had earlier issued a warning that failure to strike a deal by the government would have disastrous effects on the US and global economies. Millions of jobs would be lost, pension payments would be delayed, and US stock markets would plummet if the US went into debt default.
This is not the very first time that Biden has chosen to criticise bitcoin investors in recent weeks as a potential budget crisis looms. On Twitter less than two weeks ago, the president discussed addressing tax loopholes for “wealthy crypto investors.”
Biden’s comments highlight a rising worry about the effects of bitcoin use and the possibility of high-income people evading taxes. His remarks also highlighted the possible dangers to the poor, especially those who rely on federal aid programmes.
As per a recent Washington Post report, discussions are underway between the White House and Republican leaders regarding the potential restriction of cryptocurrency transaction mechanisms. The report mentions that the administration had previously suggested measures to address tax loopholes related to cryptocurrencies and real estate.
The proposed cryptocurrency measure aims to prevent investors from claiming a loss on an asset that they promptly repurchase, which is a rule already applicable to stocks and other assets.
