{"id":11808,"date":"2023-05-21T18:35:54","date_gmt":"2023-05-21T22:35:54","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/im-not-willing-to-strike-a-deal-with-crypto-traders\/"},"modified":"2023-05-21T18:35:55","modified_gmt":"2023-05-21T22:35:55","slug":"im-not-willing-to-strike-a-deal-with-crypto-traders","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=11808","title":{"rendered":"I’m Not Willing to Strike a Deal With ‘Crypto Traders’"},"content":{"rendered":"
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US President Joe Biden has said he is not willing to ink a debt ceiling agreement that would benefit crypto traders.<\/p>\n

During the final day of G7 talks in Japan, Biden addressed the budget negotiations, claiming that the proposed terms by Republican leaders are “unacceptable.”<\/p>\n

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\u201cI\u2019m 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.\u201d<\/p>\n<\/blockquote>\n

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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.\u00a0<\/p>\n

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.\u00a0<\/p>\n

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.\u00a0<\/p>\n

According to a recent\u00a0report\u00a0by the Washington Post, there’s an ongoing discussion between the White House and Republican leaders about blocking the mechanism for cryptocurrency transactions.<\/p>\n

“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.\u00a0<\/p>\n

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“The cryptocurrency proposal would ensure that investors could not claim a loss on an asset that they then quickly repurchased \u2014 a rule that already exists for stocks and other assets.”<\/p>\n<\/blockquote>\n

Republicans Claim Debt Rise is a Spending Problem<\/h2>\n

Meanwhile, Republican leaders have rejected the proposal to close tax-loss harvesting for crypto or real estate.<\/p>\n

Back in March, House Speaker Kevin McCarthy\u00a0said\u00a0the US debt rise is a “spending problem, not a revenue problem,” citing the Biden administration’s excessive spending during the pandemic.<\/p>\n

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“President Joe Biden’s budget is a reckless proposal doubling down on the same Far Left spending policies that have led to record inflation and our current debt crisis.”<\/p>\n<\/blockquote>\n

Republicans are proposing to address the deficit by implementing $4.8 trillion in spending cuts, which would impact the budgets of federal agencies.<\/p>\n

The US is facing a\u00a0potential debt default, as President Joe Biden and congressional Republicans remain at odds over raising the $31.4 trillion borrowing limit.\u00a0<\/p>\n

Treasury Secretary Janet Yellen has\u00a0warned\u00a0that the Treasury risks running out of room to stay under the debt ceiling as early as June 1 if Congress fails to act.<\/p>\n

Notably, stablecoin issuer Circle has\u00a0rebalanced\u00a0its treasury holdings amid growing concerns over a potential US debt default.\u00a0<\/p>\n

The company, the issuer of the second-largest stablecoin in circulation, has opted for a mix of reserves that favors short-dated US Treasuries. This move comes amid a heated discussion among financial experts on the US debt ceiling.<\/p>\n<\/p><\/div>\n