Biden rejected debt limit deal that would benefit crypto traders

US President Joe Biden has voiced his opposition to a debt limit deal with Republican leaders that would supposedly benefit cryptocurrency traders. During a press conference at the Summit of the Group of Seven (G7), Biden described the conditions proposed by the Republicans as “unacceptable”.

Biden made it clear that he would not accept a deal that would protect estate tax fraudsters and cryptocurrency traders while putting food assistance for nearly a million Americans at risk. He referred to the purported protections for cryptocurrency traders in relation to harvesting tax losses.

Cryptocurrency tax loss harvesting is a strategy that investors use to reduce their overall tax liability. It consists of selling a cryptocurrency at a loss to offset the crypto gains. To claim a loss, the assets must be sold, and the proceeds must be used to purchase a similar asset within 30 days before or after the sale. This practice is also available for stocks and other assets.

In addition to the tax loss harvest restriction for cryptocurrencies, the White House presented Republicans with a similar proposal that prohibits investors from deferring taxes on real estate swaps. These changes could generate approximately $40 billion in tax revenue for the US government.

K. Tovar

Source: Cointelegraph

(Reference image source: Tabrez Syed, Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram