Biden Confuses the Crypto Community With Controversial Comments
President Joe Biden criticized Republicans for their budget priorities, stating that eliminating "tax loopholes benefiting wealthy crypto investors" could generate $18 billion for the government.
However, the crypto community expressed confusion and disagreement with the president’s claim, refuting the existence of such a loophole. Adam Cochran, a managing partner at Cinneamhain Ventures, argued that crypto assets face disadvantages in terms of tax treatment compared to other assets.
We don’t have to guess what MAGA House Republicans value. They’re telling us. pic.twitter.com/BM6JGMEFeq
— President Biden (@POTUS) May 9, 2023
The Biden budget projected that eliminating the wash sale loophole for digital assets would generate $23 billion over the next decade, with only $1.24 billion expected in 2024. The source of Biden’s $18 billion figure remains unclear.
In March, The Wall Street Journal reported that the president proposed taxing crypto transactions differently, aiming to raise $24 billion, as crypto assets were not subject to the same wash trading rules as stocks and bonds.
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Bloomberg also reported that crypto traders have been avoiding substantial tax payments through wash trade tactics and exploiting price fluctuations, potentially resulting in billions of dollars in unpaid taxes.
Nevertheless, the $18 billion figure mentioned in the president’s tweet does not seem to correspond to the estimated tax loophole.
This is not the first time Biden has faced criticism from the crypto industry, as he recently suggested a 30% tax on bitcoin mining electricity costs, leading mining companies to strongly oppose the proposal.
The White House did not respond immediately to a request for comment on Biden’s tweet.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
