Biden on Crypto: President Slams Whales and Traders Amid Debt-Ceiling Crisis
Key takeaways
- President Biden has accused Republicans of prioritizing the needs of “tax cheats and crypto traders”
- The stinging assessment comes after the debt-ceiling crisis rages without any end in sight
- Biden’s budget proposal includes new financial rules for digital assets
President Biden didn’t mince his words this week about crypto traders, who are under fire as Democrats accuse the Republicans of wanting to protect the rich while throwing poorer households under the bus. He wants reforms as part of his budget proposal — let’s get into the details and review how the crypto market is holding up.
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What did Biden say about crypto?
Biden made the comments at the G7 summit in Japan, amid the ongoing debt-ceiling drama which has gripped the nation. If an agreement isn’t reached, the U.S. could default on its debts as early as June 1.
The official comments: “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,” the President said. Ouch.
Biden also blasted the $30 billion in tax breaks for the oil industry and $200 billion in excess payments for the healthcare industry instead of funding Medicaid that Republicans are allegedly after as the debt-ceiling crisis rages on.
The U.S.’ stance on crypto
Crypto is in the spotlight because the President had outlined plans in his $6.9 billion budget plan to create new financial rules for digital assets and bring crypto in line with more traditional investments. He also floated a 30% tax on the energy used in crypto mining operations.
It wasn’t a surprise, given the SEC has been cracking down hard on the sector. The U.S. regulator has been coming after almost every major crypto company you can think of: it’s currently fighting Ripple, Coinbase and even has Binance in its crosshairs. And that’s just in the last few months.
The crypto market has held steady as the debt-ceiling drama continues, hovering between the $27,000 and $27,500 price marks. It’s a sign crypto investors are nervous to see how the saga plays out, as the stock market is also stuck in a similar position.
The bottom line
Crypto regulation has been on the agenda for some time since the FTX fallout highlighted shortcomings in the industry. It’s only natural for the President to want to avoid that from happening again — and tensions are clearly running high as the debt-ceiling crisis draws closer to the fatal deadline.
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