Biden ties Republicans to ‘wealthy crypto investors’ in budget battle

President Joe Biden took a dig at “wealthy crypto investors” on Tuesday, seeking to tie Republicans to the digital asset industry as he knocks the GOP’s proposed federal budget cuts.

“We think Congress should cut tax loopholes that help wealthy crypto investors ($18 billion),” Biden said on Twitter. “MAGA Republicans think Congress should cut food safety inspections ($15 billion).”

Biden’s knock at “wealthy crypto investors” comes as a potential debt crisis looms. Treasury Secretary Janet Yellen warned last week that the U.S. could run out of cash as soon as June 1 “if Congress does not raise or suspend the debt limit before that time.” 

“We don’t have to guess what MAGA House Republicans value. They’re telling us,” Biden said in comparing the GOP’s proposed spending cuts to his own.

The White House did not immediately respond to a request for comment.

Biden floats new tax treatment for crypto ‘wash sales’

Biden’s 2024 proposed budget suggests changing tax treatment for “wash sales” of digital assets, which would eliminate tax deductions on losses incurred on selling and quickly rebuying the same or similar crypto investment. The budget also floats a 30% tax on energy used in crypto mining operations. 

President Joe Biden floated closing tax loopholes on Twitter.

The president met with Congressional leaders on Tuesday to address the debt limit and possible budget cuts. Biden said he is open to “cutting wasteful spending,” but disagrees with many of the GOP’s proposed reductions.

Some Republicans have grown closer to the crypto industry over the last several years. The conservative Club for Growth, for example, launched two crypto-focused super PACs in the last election cycle.

The White House, too, has been active on crypto policy, releasing a series of digital asset reports last year. 

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