While speaking on the last day of the G7 nations summit, President Joe Biden announced that he had met with all four congressional leaders prior to his departure and reached a consensus. Through the meeting, they agreed that the only viable way to proceed was through a bipartisan agreement. Biden went on to state that the proposals put forth by Republicans are not acceptable

He further added that his government wouldn’t take on a debt deal that covers safeguards affluent tax evaders. At the same time, jeopardizes food assistance for a million Americans. The G7 nations include the United States, Canada, Japan, the United Kingdom, France, Germany and Italy, plus the European Union as a “non-enumerated member.”

BREAKING: President Joe Biden speaking on the final day of the G7 summit

"I'm not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistants at risk."

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— Sky News (@SkyNews) May 21, 2023

In a publication released by the Washington Post, there is an ongoing conversation between the Republican leaders and the White House. This is in regard to the potential prohibition of this mechanism for conducting cryptocurrency transactions. The supposed safeguards for individuals who trade in cryptocurrency pertain to tax-loss harvesting.

In the world of cryptocurrencies, tax-loss harvesting is a strategy used by investors to reduce their overall tax liabilities. To balance the capital gains that result from winnings, this strategy comprises selling a coin at a loss.

This is not the first time Joe Biden has singled out cryptocurrency for criticism. On the 9th of May, Joe Bidden took to his Twitter account, stating that they are voting against tax cuts that generate close to $18 billion for wealthy crypto investors. This is a part of his opposition to the budget proposals put forward by Republicans.

From Bad to Worse: The Potential Ripple Effects of a US Debt Default on Global Markets

The United States is in financial trouble because it has reached its $31.4 trillion debt ceiling. To prevent defaulting on the nation’s sovereign debt, the Treasury Secretary, Janet Yellen, has highlighted the importance of raising the debt ceiling before June 1st. Failure to do so could result in the nation’s inability to pay its debt commitments to holders of Treasury bonds.

If the U.S. government default, it will cause a disaster for the American economy and international financial structure. Things we might expect from the default include a Stock market crash, Job losses, and probably an economic recession.

Assuming that the US debt default was to occur, the value of Bitcoin is anticipated to rise. Bloomberg did a survey showing that Gold, US Treasuries, and Bitcoin are the top three assets that would serve as a haven if the US fails to increase its debt ceiling and defaults on its debt.