United States President Joe Biden has refused to strike a debt deal with Republican leaders that will protect crypto investors. Biden expressed that he has no intention of willingly befriending or protecting crypto-related entities through tax-loss harvesting.
“I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk [for Americans],” Biden said in his recent speech.
U.S. Plans to Cut Spending by Over $1T
Speaking at the recently held G7 Summit in Japan about budget negotiation, Biden explained that his administration has no plans to default on their debt obligations. Therefore, he has recommended a proposal which will cut their spending by more than a trillion dollars.
According to the U.S. president, before coming for the summit, he met with all four congressional leaders and together, they concluded a bipartisan government which would prevent a debt default.
President Biden Proposed 30% Tax on Crypto Miner’s Electricity Usage
In recent times, the Biden administration has not made it any easier for crypto investors in America. Two months ago, the administration hinted at the possibility of a 30% tax tariff on the electricity used by crypto miners in the region.
The tax proposal is expected to take effect from December 31st, 2023. While America is not the first country to impose such tax rates, some crypto heavyweight fears that it may turn out to be a disaster. Fred Thiel, the Chief Executive Officer (CEO) of Marathon Digital Holdings fears that the proposed tax will cause mining facilities to move abroad where there are safer tax havens.
U.S Regulators Crackdown on Crypto Exchanges
Regulators and watchdogs in the United States have not expressed a different opinion towards crypto entities. There has been an intense crackdown on crypto exchanges and their offerings following the bear market of last year. Cryptocurrency exchange Coinbase has an ongoing lawsuit with the Securities and Exchange Commission (SEC) over regulatory chaos in the ecosystem.
Bittrex has received a warning suggesting that it may face a possible enforcement action from the same regulator while Ripple is waiting for Judge Analisa Torres verdict on its more than two-year long lawsuit with the SEC.
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