Crypto community hits back at Bidens $18 billion tax loopholes tweet, market makers cut US operations – Reuters

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Biden faces backlash over $18 billion crypto tax loopholes tweet

US President Joe Biden is facing a backlash from the crypto community over a tweet targeting tax loopholes that help wealthy crypto investors.

Tuesday’s tweet is part of a wider saber on Capitol Hill, where Democrats and Republicans are deadlocked on raising the US debt limit by $31.4 billion or risking the country fails in three weeks.

The Potus Twitter account argued that while Democrats want to close crypto tax loopholes worth $18 billion, Republicans want to cut nearly $15 billion in food safety inspection funding.

Critics expressed confusion over Bidens’ $18 billion claim, and some outright denied the existence of any crypto flaws.

Crypto has turned into an increasingly partisan issue over the years, with Republicans like Ron DeSantis taking a pro-crypto stance and Demoracts like Elizabeth Warren campaigning for tougher crypto laws.

NOW READ: CBDC Attacks Highlight New Crypto Battleground

Top Market Makers Jane Street and Jump Crypto Leak Amid Uncertain US Regulation

According to a Bloomberg report, top market makers Jane Street Group and Jump Crypto will reduce digital asset activity in the US and beyond.

The report cited regulatory uncertainty as the main cause behind their plans to reduce crypto trading in the United States.

Jump Crypto will expand its operations overseas, following the trend of other major crypto firms Gemini and Coinbase, while Jane Street will also cut its global crypto operations.

READ NOW: Argentinians aim to slow crypto and boost black market workarounds

Coinbase slams SEC over proposed custodian law

Crypto exchange Coinbase has criticized plans by the US Securities Exchange Commissions to restrict access to custody by investment advisers.

The proposed rule would require investment advisers to store clients’ crypto assets with qualified custodians, such as banks or savings trusts.

Coinbase Chief Legal Officer Paul Grewal tweeted that the SEC should continue to define state trust companies and other state-regulated financial institutions as qualified custodians and refrain from aggregating digital assets with d other types of titles.

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Other critics of the proposed rules include Republican lawmakers and US banking giant JPMorgan.

READ NOW: Coinbase Says SEC’s Proposed Custody Rule Change Unnecessarily Distinguishes Crypto

First, the SEC should continue to define state trust companies and other state-regulated financial institutions as QCs. It works well today, so there’s no reason to disrupt long-standing congressional and SEC policy. 4/7

— paulgrewal.eth (@iampaulgrewal) May 9, 2023 Grayscale files with SEC to create three crypto ETFs

Asset manager Grayscale on Tuesday filed with the SEC the creation of three crypto-related exchange-traded funds, The Block reported.

The ETFs are under the new Grayscale Funds Trust, which has submitted registration documents on file to the SEC.

Grayscale is currently at odds with the SEC over a rejected proposal to convert the company’s GBTC fund into a Bitcoin spot ETF.

NOW READ: European Regulators Pushed To Drop Smart Contract Laws That Would Kill DeFi

Abu Dhabi will host the largest Bitcoin mining operation in the Middle East

The capital of the United Arab Emirates, Abu Dhabi, plans to host the largest Bitcoin mining operations in the Middle East as the Abu Dhabi Global Markets JV Entity.

The venture is being developed by Marathon Digital Holdings and Zero Two, and will have a combined capacity of 250 megawatts for mining.

The project will take advantage of excess energy in the area and Marathon and Zero Two said the project will purchase clean energy certificates for any unsustainable electricity used.

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