Biden: I'm Not Willing to Strike a Deal With 'Crypto Traders'
US President Joe Biden has said he is not willing to ink a debt ceiling agreement that would benefit crypto traders.
During the final day of G7 talks in Japan, Biden addressed the budget negotiations, claiming that the proposed terms by Republican leaders are "unacceptable."
“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.”
The alleged protections for crypto traders refer to tax-loss harvesting, a tax planning strategy that involves selling cryptocurrencies that have experienced a decline in value in order to offset capital gains taxes on other investments.
The capital losses that result from the sale of these cryptocurrencies can be used to offset capital gains or even reduce ordinary income taxes up to $3,000 per year.
Essentially, the investor is taking advantage of the downward trend in the crypto market to strategically sell assets at a loss, reducing the amount of taxes they owe.
According to a recent report by the Washington Post, there's an ongoing discussion between the White House and Republican leaders about blocking the mechanism for cryptocurrency transactions.
"The White House proposals to close a cryptocurrency-related tax loophole and a real estate loophole were both previously pitched by the administration," the report said.
"The cryptocurrency proposal would ensure that investors could not claim a loss on an asset that they then quickly repurchased — a rule that already exists for stocks and other assets."
Meanwhile, Republican leaders have rejected the proposal to close tax-loss harvesting for crypto or real estate.
Back in March, House Speaker Kevin McCarthy said the US debt rise is a "spending problem,
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