In a dramatic turn, the United States debt ceiling bill recently received approval from the House, effectively sidestepping the contentious topic of crypto taxation. Initially met with significant pushback from President Joe Biden and other quarters due to perceived benefits to wealthy tax evaders and cryptocurrency traders, the bill eventually secured sufficient backing. With the threat of a national default looming, passing this bill has become a major relief. A critical point of conflict surrounding the debt ceiling bill was its implications for crypto traders. Specifically through the mechanism of tax-loss harvesting. Widely employed by investors as a strategy to reduce their overall tax liability, this tactic was put under the microscope. It created significant discord among lawmakers. “I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk for nearly a hundred — excuse me — nearly 1 million Americans,” said US President Joe Biden. Nonetheless, the decision to withdraw the contentious issue of crypto taxation from the final bill led to a breakthrough. It enabled bipartisan agreement and passage of the legislation through the House.
Full story : US Debt Ceiling Bill Passes After Withdrawing Crypto Tax.
