<p>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.</p> <p class="p1">“We think Congress should cut tax loopholes that help wealthy crypto investors ($18 billion),” Biden <a href="https://twitter.com/potus/status/1655988502079602690?s=46&amp;t=FYGzVq-s9dFHGSUdI1mdTQ"><span class="s2">said on Twitter</span></a>. “MAGA Republicans think Congress should cut food safety inspections ($15 billion).”</p> <p class="p1">Biden’s knock at “wealthy crypto investors” comes as a potential debt crisis looms. Treasury Secretary Janet Yellen <a href="https://home.treasury.gov/system/files/136/Debt_Limit_Letter_Congress_Members_05012023.pdf"><span class="s2">warned last week</span></a> 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.”<span class="Apple-converted-space"> </span></p> <p>“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.</p> <p>The White House did not immediately respond to a request for comment.</p> <h2>Biden floats new tax treatment for crypto 'wash sales'</h2> <p class="p1">Biden’s 2024 <a href="https://www.theblock.co/post/218549/biden-includes-crypto-tax-changes-in-2024-budget-request"><span class="s2">proposed budget</span></a> 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 <a href="https://www.theblock.co/post/229221/biden-tax-on-bitcoin-miners-electricity-usage"><span class="s2">30% tax</span></a> on energy used in crypto mining operations.<span class="Apple-converted-space"> </span></p> <div id="attachment_230101"class="wp-caption aligncenter" style="max-width: 313px;"><img class="has-caption size-medium wp-image-230101" src="https://www.tbstat.com/wp/uploads/2023/05/Screen-Shot-2023-05-09-at-4.16.24-PM-303x450.png" alt="" width="303" height="450" /><p class="wp-caption-text">President Joe Biden floated closing tax loopholes on Twitter.</p></div> <p class="p1">The president met with Congressional leaders on Tuesday to address the debt limit and possible budget cuts. Biden said he is open to “<a href="https://twitter.com/POTUS/status/1655709164864262146"><span class="s2">cutting wasteful spending</span></a>," but <a href="https://twitter.com/POTUS/status/1655588369450106887"><span class="s2">disagrees</span></a> with <a href="https://twitter.com/POTUS/status/1654881431108173825"><span class="s2">many</span></a> of the GOP’s proposed reductions.</p> <p class="p1">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.</p> <p class="p1">The White House, too, has been active on crypto policy, releasing a series of <a href="https://www.theblock.co/post/170770/here-are-all-of-the-biden-administrations-crypto-reports"><span class="s2">digital asset reports</span></a> last year.<span class="Apple-converted-space"> </span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>