For Crypto, The Partisan Ship Has Sailed

The Breakdown


All right Friends, it has been an extremely active couple of days in the politics of Bitcoin and crypto. First of all, Brad Sherman has just been all over the place talking about how we're all sub human tax evaders and how the U.S. should really be asking whether this industry should be allowed to exist at all. Here's a recent clip from him on Bloomberg crypto. There's this fear of missing out that we've got to keep up with other countries. Peru is way ahead of us and cocaine production, China's way ahead of us in Oregon harvesting. We don't need to keep up on those things and we don't need to keep up on crypto. As for protecting U.S. investors, investors know and they certainly know now that when you send your money to The Bahamas or Cayman Islands, you do not have protection, you could lose it all. And the idea that we should tell investors that something's licensed in the United States when it's not only as dangerous for the investors is crypto is, but as harmful to our country as crypto tries to be, I don't see a reason to do that. At the end of the day, though, Brad Sherman is going to shrm. So no surprises there. A bigger deal was on Tuesday, may 9th. The official Biden potus account tweeted, we don't have to guess what maga House Republicans value, they're telling us. Now that quote led to an image which said, we think Congress should cut, tax loopholes that help wealthy crypto investors, 18 billion. Now one kind of enjoyable thing about this was that people use Twitter's new note feature to add some context that they thought people might want to know. Quote, virtual currency is treated as property and general tax principles applicable to property transactions apply to transactions using virtual currency. When investors sell virtual currency, they must pay tax on any capital gain. There is no evidence of loopholes to avoid this. I think that the particular language used here by the presidential account is revealing. First of all, it shows Democrats getting more comfortable lumping crypto in as explicitly a partisan category.

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