There is an opinion in the cryptocurrency community that the policies of US President Joe Biden could negatively affect Bitcoin and the entire cryptocurrency market.
Despite the fact that Biden has been in office for only a few months, the president is already making radical changes to the country’s internal politics that could affect the cryptoasset industry. Thus, the presidential administration intends to double the tax on capital gains – up to 43.4%. This will primarily affect wealthy citizens who include bitcoin in their portfolios for diversification.
The proposed changes in tax legislation are aimed at increasing funding for social programs without harming the economy. However, trader and analyst Peter Brandt believes that such “tax plans” were one of the factors that influenced the recent decline in the bitcoin rate to $ 47 thousand.
“Biden’s presidency could be bad for Bitcoin. People will start selling cryptocurrency to pay capital gains tax. But I don’t think the bearish trend will last long, ”suggested Brandt.
The CEO of the Kraken cryptocurrency exchange Jesse Powell also believes that such innovations by Biden to stimulate the US economy could hurt the development of the cryptocurrency market. Powell
started discussion among their Twitter followers whether to move to Texas, which is considered the center of cryptocurrency development. Some users suggested that he change jurisdiction to Puerto Rico, which Powell called a possible way out of the situation.
The US President has also begun discussing cryptocurrency market regulation with the US Securities and Exchange Commission (SEC). Gary Gensler was officially confirmed as chairman of the SEC this month. Given his knowledge of the cryptocurrency industry, its regulation could get off the ground. However, if we take into account that Biden is concerned about the state of the environment and climate change, and many opponents of bitcoin believe that its mining leaves a large carbon footprint, the US authorities may tighten their stance on bitcoin.
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