- US President Joe Biden said that the federal tax system will eliminate loopholes for crypto traders.
- Bitcoin price held above the $30,000 psychological level, undeterred by Biden’s speech.
- The Wall Street Journal has previously reported on Biden’s plan to change crypto tax rules and target wash trading.
US President Joe Biden said Wednesday that loopholes in crypto taxation will be eliminated for traders and hedge fund managers, adding to previous comments from his administration that point to new taxation rules against crypto wash trading.
Loopholes in taxation to be eliminated in new tax system
President Biden addressed the loopholes in the existing tax system and commented on changes for crypto traders on Wednesday in a speech in Chicago while presenting its economic plan. According to a transcript published by the White House, the US President said:
We’re going to make [the federal tax system] fair by eliminating loopholes for crypto traders, hedge fund managers.
The Wall Street Journal has previously reported that the US President is likely to propose changes that target crypto wash trading. Rules against wash trading apply to stocks and bonds but not to crypto trades.
Crypto traders sell certain investments and accept a tax-deductible loss before reinvesting. This is one of the practices that the government is likely to address in the new tax system in order to make the system “fair”, Biden said.
Despite the speech, Bitcoin price sustained above the psychological level of $30,000.
Bitcoin holds $30,000 level despite likely changes in the tax system
Bitcoin price has rallied from the $25,000 level to $31,000 over the past two weeks. Since its local peak above $31,000, BTC has sustained above the psychological barrier of $30,000, despite US Securities and Exchange Commission’s (SEC) crackdown on cryptocurrencies.
BTC price’s uptrend also remained intact despite the US President’s recent remarks.