President Biden has promised to close tax loopholes for cryptocurrency dealers to ensure a fair and equitable tax system, aiming to prevent a potential loss of $18 billion in tax revenue. The President will use this action as part of his upcoming effort to rectify inequities in the present tax system.
During a recent White House gathering, President Biden emphasized his dedication to addressing the cryptocurrency tax loophole. To level the playing field, the President emphasized closing loopholes for hedge fund managers and cryptocurrency traders. This move aims to ensure fairness and equal treatment.
The loophole in question enables cryptocurrency dealers to quickly sell and buy back digital currencies while avoiding higher tax rates. President Biden has consistently expressed his desire to address the matter since his May tweet. He has reiterated his stance on multiple occasions.
President Biden’s comments caused a temporary decline in cryptocurrency prices, with Bitcoin dropping 1.3% and trading near $30,000. Later, BTC, which presently controls more than half of the cryptocurrency market, surged back beyond $30,500.
President Biden is anticipated to elaborate on his strategy to target cryptocurrency dealers and ensure tax compliance as his campaign proceeds. The proposed policies seek to increase tax equity and make up for lost tax revenue.
Market participants and cryptocurrency aficionados will be keenly watching events because any regulatory changes might have a big impact on the sector.