G7 Summit: Biden Takes a Stand on Crypto Traders

In his address, Biden revealed his stance on increasing the national debt limit and the crypto industry: 

His statement relates to a loophole often exploited by investors to minimize their tax responsibilities. This strategy involves selling cryptocurrencies or stocks at a loss, which is then reported in the tax return. These assets are subsequently bought back.

This isn't the first time Biden has shown a negative disposition towards cryptocurrency. This perspective was also evident in his annual economic report, where he dedicated a separate section to digital assets. We thoroughly analyzed this report in one of our articles. Moreover, he's hinted at introducing a tax for miners, equating to 30% of their energy expenses.

As for the substantial size of the national debt, there's an ongoing, intense debate between U.S. political parties (Democrats and Republicans). The White House blames previous administrations for implementing tax cuts, alleging that this has resulted in decreased budget revenues. On the other hand, Republicans argue that the root of the problem lies in the excessive expenditures during the coronavirus pandemic. 

Recently, U.S. Treasury Secretary Janet Yellen also voiced her concerns regarding the national debt. She indicated that if the debt limit isn't raised, the United States may be unable to pay its bills by June 1st, raising the specter of a potential default. Despite these alarming circumstances, President Biden remains steadfast in his assurance that a default will not occur.

Currently, the world is in a state of anticipatory tension, waiting for a solution to this pressing issue. The status of the U.S. economy - the largest in the world - has far-reaching implications for other nations. A default could have a significant ripple effect on the cryptocurrency market, known for its high-risk nature.

Importantly, beyond the matter of national debt, Joe Biden also actively addressed the situation in Ukraine during the G7 summit. He unveiled a new military aid package amounting to $375 million, encompassing ammunition, artillery, armored vehicles, and training programs. Moreover, plans were announced to implement new sanctions against russia and to approve the Western supply of F-16 fighter jets to Ukraine.