Biden Will Not Agree to Debt Friendly for Crypto Traders

Despite the US facing default as soon as June, President Joe Biden clarified that he would “not agree to a deal that protects wealthy tax cheats and crypto traders” while speaking at the final day of the G7 summit in Hiroshima.  

As the US faces defaulting on its debt obligation, President Joe Biden said he will not agree to a “deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk.” Biden spoke at a press conference on Sunday following the annual Group of 7 (G7) summit in Hiroshima, Japan.  

BREAKING: President Joe Biden speaking on the final day of the G7 summit"I'm not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistants at risk."https://t.co/q2ATjj9RFh? Sky 501, Virgin 602, Freeview 233 and YouTube pic.twitter.com/PIf0O5tKXq

— Sky News (@SkyNews) May 21, 2023

The US president is under pressure to agree to a new budget as without a new budget deal; the US could default on its debt obligations as soon as June 1, 2023.

Biden, however, stressed that during a meeting with all four Congressional leaders before the summit, they agreed that the only viable path forward is by way of a bipartisan agreement. Biden said:

“I’ve done my part. We put forward a proposal that cuts spending by more than a trillion dollars, and on top of the nearly $3 trillion in deficit reduction that I previously proposed through the combination of spending cuts and new revenues.”

Adding, “Now it’s time for the other side to move from their extreme positions because much of what they’ve already proposed is simply, quite frankly, unacceptable.”

Biden Won’t Budge on Tax Breaks, Pharmaceuticals, and Crypto Traders

In addition to refusing a deal that would protect so-called “wealthy tax cheats”, Biden listed many other areas where he would not agree to a deal.

He said:

“I’m not going to agree to a deal that protects, for example, a $30 billion tax break for the oil industry, which made $200 billion last year … while putting healthcare of 21 million Americans at risk by going after Medicaid.”

The President will also refuse a deal that would protect the pharmaceutical industry at the cost of schoolteachers, assistants, and law enforcement officers:

“I’m not going to agree to a deal that protects $200 billion in excess payments for pharmaceutical industries and refusing to count that while cutting over 100,000 schoolteachers and — and assistants’ jobs, 30,000 law enforcement officers’ jobs cut across the — the entire United States of America.”

Biden was clear on his stance against tax breaks and crypto traders, stressing:

I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk for nearly a hundred — excuse me — nearly 1 million Americans.

Biden: The US Will Not Default on Its Debt Obligation

Bitcoin.com reports Biden addressed concern over America being at risk of defaulting on its debt obligations. The possibility of the US defaulting became a widespread concern after US Treasury Secretary Janet Yellen said Treasury may run out of money to pay all the government’s bills as soon as June 1 should Congress “not raise or suspend the debt limit before that time.”

President Biden is, however, confident that the US would not default, and all four congressional leaders reportedly agree with him. He reiterated:

America has never defaulted … on our debt — and it never will.

Biden’s proposed budget for 2024 includes amendments to tax treatment for “wash sales” of digital assets and a 30% tax levy on energy used for cryptocurrency mining activities.

Opinion

Is the US shooting itself in the foot with its attitude toward the crypto industry? It is certainly not helping itself by trying its utmost best to “suffocate crypto with high taxes.” The regulatory approach by the SEC and other enforcement agencies has made it clear that the US wants to drive crypto from its shores. Companies such as Coinbase and Binance have been the target of the SEC while trying everything to abide by regulatory compliance but to no avail.

While the US tried everything in its power to stifle the industry, crypto firms are looking to other jurisdictions that would allow them to conduct their operations within a reasonable regulatory framework. The European Union’s (EU) landmark MiCA regulation is not far from taking effect, and the UK is moving fast with a regulatory framework. We could very likely see the EU and UK become crypto hubs.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.