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Biden’s latest action against crypto has garnered several opposing reactions from the crypto community.
The 46th elected president of the United States Joe Biden has announced his intention to close tax loopholes for “wealthy crypto investors”. He tweeted requesting Congress to cut loopholes that help the crypto tycoons. Biden also accused MAGA House Republicans of supporting wealthy crypto investors and failing to support the food safety inspections budget. The president made this statement with respect to his proposed fiscal year 2024 budget.
While Congress supported the tax loopholes from wealthy crypto investors, it opposed the food safety inspection budget. Proposed taxes from crypto investors amounted to $18 billion, while the food safety inspection budget was $15 billion. Biden explained that reducing the budget is a priority for every country worldwide. He said Republicans prefer to cut programs critical to seniors and middle-class working families for their selfish interest.
The disagreement between Biden and Republicans surfaced after the Treasury warned of an impending debt crisis. Treasury Secretary Janet Yellen said the US could run out of cash if Congress does not suspend the debt limit before the stated date. Comparing the GOP’s proposed federal budget cuts, Biden said:
“We don’t have to guess what MAGA House Republicans value. They’re telling us.”
Earlier this year, the Biden-led administration plans to generate approximately $24 billion through tax rules. This implies that taxes would apply to crypto assets like stocks and other securities. The crypto rules will focus on wash trading. On May 2, Biden also plans to impose a 30% tax on mining activities. Currently, there is no projected amount to be generated from the tax proposal. However, Biden aims at taxing crypto firms rather than wealthy crypto investors. On the other end, Republicans are waiting to oppose the US central bank digital currency (CBDC) proposal.
Notably, some Republicans have drawn closer to the burgeoning crypto industry in the past few years. For instance, the conservative Club for Growth launched two crypto-focused super PACs in the last election cycle.
Biden Wars Against Wealthy Crypto Investors
Biden’s latest action against crypto has garnered several opposing reactions from the crypto community. Billy Markus, Dogecoin co-creator, said American crypto investors are not wealthy like Biden thinks. Peter Conradi, a community moderator for Beeple and Async Art, said Biden should back off his proposed tax codes. Conradi added that other countries are tapping into the innovative opportunities embedded in the financial revolution.
In 2023, the US Securities and Exchange Commission (SEC) confiscated crypto assets belonging to various crypto firms. Brain Armstrong, Coinbase CEO, has called out the regulatory body, saying it is incapable of regulating the affairs of the cryptocurrency space. The crypto community has also accused SEC of selling unregistered securities from Genesis, Terra Labs, Justin Sun and his companies, and Bittrex.