Joe Biden Slams Wealthy Crypto Traders: What You Need To Know On The President’s Anti-Bitcoin Stance

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Joe Biden Slams Wealthy Crypto Traders: What You Need To Know On The President’s Anti-Bitcoin Stance
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  • Joe Biden takes a swipe at cryptocurrency traders and “wealthy tax cheats”, insisting they remain undeserving of tax cuts and similar benefits.
  • The comments have drawn speculations among industry executives on the stance of the White House as budget negotiations resumed on May 22.
  • Joe Biden reiterated his commitment to ensuring the country does not default on its debt to prevent a looming economic meltdown. 

The Biden administration has maintained a tough stance against digital assets over the years. The first blow landed on miners and then traders. How far will the administration stretch this anti-crypto rhetoric?

Joe Biden criticized digital asset traders and wealthy tax cheats as he wrapped up the G7 summit in Japan. Speaking at a press conference, the President insisted that these crypto traders are not worthy beneficiaries of the tax cuts proposed by Republicans.

“Let me be clear, 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 1 million Americans,” he said. 

“It’s time for Republicans to accept that there’s no bipartisan deal to be made solely on their partisan terms,” he added.

Strong indicators have been that some Republicans are pushing to support “tax loopholes” to aid digital asset investors, including miners. In Biden’s $6.9 billion budget plan, the President has stressed the importance of restructuring the rules relating to digital assets to protect Americans.

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The comments come in as budget negotiations intensify ahead of the United States deadline to raise the debt ceiling or risk defaulting on her debts for the first time. Joe Biden and House Speaker Kevin Macarthy agreed to resume negotiations on Sunday to prevent an “economic catastrophe as few as 11 days away.”

DAME Tax is only the first kick

This year, the White House released a proposed 30% tax on digital asset miners coupled with a report justifying its position. The administration based the decision on the amount of energy consumed in mining digital assets adding that it creates a hardship for American communities. 

Firms do not have to pay for the full cost they impose on others. It encourages firms to start taking better account of the harms they impose on society,” the report reads. 

The proposed DAME tax will come into effect in 2024 and will require miners to pay a 10% tax before it grows to 30% in subsequent years. The digital asset community has criticized this move as an attempt to stifle the growth of the sector with many saying the administration has “misplaced priorities.”

With the President’s recent comments, many wonder where the line will be drawn after proposing new regulations, miners’ and trader’s taxes, etc.