- US President Joe Biden insists he won’t accept a deal that shields wealthy tax cheats and crypto traders from tax liabilities while jeopardizing food assistance for millions of Americans.
- The US Government has until June 1st to reach an agreement on the debt ceiling to avoid a potential economic catastrophe, including the loss of millions of jobs and a stock market crash.
Biden’s Stance on Crypto Amid G7 Summit Discussions
During the G7 summit, US President Joe Biden revealed his steadfast stance on crypto regulations. After meetings with top congressional leaders, he declared that progress could only be achieved through bipartisan agreement. Targeting the crypto sector, Biden insisted that he would not approve a debt agreement that protects wealthy tax dodgers and cryptocurrency traders, potentially endangering food assistance for a million American citizens.
The President views the proposals put forth by the Republicans as unacceptable.
BREAKING: President Joe Biden speaking on the final day of the G7 summit
"I'm not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistants at risk."https://t.co/q2ATjj9RFh
📺 Sky 501, Virgin 602, Freeview 233 and YouTube pic.twitter.com/PIf0O5tKXq
— Sky News (@SkyNews) May 21, 2023
Potential Impact of US Debt Default on Crypto Market
The US government is facing a June 1st deadline to agree on the debt ceiling or risk defaulting. US Treasury Secretary Janet Yellen has previously cautioned about the severe consequences of a failure to reach an agreement. A US debt default could trigger millions of job losses, delays in pension payments, and a stock market crash, all potentially devastating for both the US and global economy.
Interestingly, analysts predict that such a scenario could lead to a surge in the price of Bitcoin. Bloomberg’s latest Markets Live Pulse survey identified Gold, US Treasurys, and Bitcoin as the top three safe-haven assets should the US fail to raise its debt ceiling and default on its debt.
Biden’s Continued Criticism of Crypto Investors
Biden has a history of criticizing crypto investors in the context of Republican budget proposals. He has voiced concerns about tax loopholes benefiting wealthy crypto investors, claiming that these loopholes generate $18 billion for such traders. The President’s opposition to such measures underscores his administration’s careful scrutiny of the growing influence of cryptocurrency and its implications for traditional financial and regulatory systems.