May 22, 2023

Biden Rejects Republicans’ Deal To Protect Crypto Traders

Joe Biden

Joe Biden

US President Joe Biden expressed his rejection of an agreement with the Republicans on the debt ceiling, which could benefit crypto traders.

Speaking to the reporters during a press conference during the Group of Seven (G7) Summit, Biden described the Republicans’ proposed terms as unacceptable, according to Cointelegraph.

“I’m not going to agree to a deal that protects wealth tax cheats and crypto traders while putting food assistance at risk for nearly 1 million Americans,” Biden noted.

These protections for crypto traders, which Biden talked about, are related to tax-loss harvesting. Crypto tax-loss harvesting is a strategy used by investors to offset capital gains in their crypto investments by selling losing positions at a loss that could reduce tax liability on cryptocurrency transactions.

The Washington Post mentioned that there are talks between the White House and Republicans about preventing crypto traders from benefiting from this agreement.

A study by Bloomberg found that Bitcoin (BTC) became one of the top three assets in case of a theoretical debt default in the US.

According to Bloomberg’s latest Markets Live Pulse survey, some investors consider Bitcoin a kind of digital gold. The survey pointed out that Bitcoin is a more popular safe haven than the US dollar amid the risk of a US debt default. The survey was conducted from May 8 to 12, with the participation of 637 respondents, including professional and retail investors.

The survey showed that 11% of retail investors will go for investing in Bitcoin if the US hits the debt ceiling, while 7.8% of the surveyed professional investors will buy Bitcoin, according to Cointelegraph.

Bloomberg’s survey showed that more than 50% (51.7%) of professional investors will buy gold, while 45.7% will do so if the US government fails to avoid a debt default. US Treasury came as a second alternative, following gold.

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