President Biden, in light of his upcoming campaign, has made a promise regarding the crypto industry and traders. According to the current President, he will work on making the current tax system fair by eliminating loopholes for crypto traders.
President Biden previously tweeted that the loophole was costing the government $18 billion in lost tax revenue. This loophole has allowed crypto traders to evade taxes for some time.
“We’re going to make it fair by eliminating loopholes for crypto traders, hedge fund managers,” The President said Wednesday, according to a transcript released by the White House.
President Biden had previously mentioned wanting to close crypto loopholes in May. His official Twitter account tweeted that Congress should close “tax loopholes that help wealthy crypto investors,” which was estimated at about $18 billion in lost tax revenue. This was one of his exceptions to accepting a debt deal during the US default crisis.
The crypto “loophole” in question likely refers to the fact that traders can sell and repurchase cryptocurrency within short windows, without incurring a higher tax rate. President Biden will likely explain his plan to crack down on crypto traders more throughout the campaign trail.
Following President Biden’s comments, Bitcoin fell 1.3% to just under $30,000. BTC currently makes up over half of the current crypto market. However, it has since rallied back north of $30,500.