Crypto news recap: Tether embraces Bitcoin | Al Bawaba
ALBAWABA- This week in crypto news recap, Tether, the leading stablecoin issuer, made waves by diversifying its reserves and embracing Bitcoin. While Robert F. Kennedy Jr. makes history as the first us presidential candidate to accept bitcoin donations. On the other hand, Biden opposes debt ceiling deal favoring crypto traders. You know the drill, let’s dive in!
Robert F. Kennedy Jr. Makes History as First US Presidential Candidate to Accept Bitcoin Donations
During his debut as a presidential candidate at the Bitcoin 2023 conference, Robert F. Kennedy Jr. declared that he would become the inaugural contender in American history to embrace Bitcoin for campaign contributions. At the event, he lauded the digital currency as a representation of democracy and liberty. By participating in the Bitcoin conference, RFK Jr. aims not only to appeal to voters but also to tap into a lucrative stream of potential donations worth millions of dollars. Joe Biden, the current President, is the Democratic candidate.
Biden Opposes Debt Ceiling Deal Favoring Crypto Traders
During a press conference at the G7 Summit, United States President Joe Biden expressed his opposition to a proposed debt ceiling agreement with Republican leaders, citing concerns that it would disproportionately benefit crypto traders. Biden classified the terms put forth by Republicans as “unacceptable,” emphasizing that he would not agree to a deal that protects wealthy tax evaders and crypto traders while potentially endangering food assistance for nearly 1 million Americans. The specific protections in question revolve around tax-loss harvesting, which is currently being discussed between the White House and Republican leaders. This strategy allows investors to offset capital gains from profitable crypto investments by selling a cryptocurrency at a loss. To claim a loss, the sold assets must be replaced within a 30-day window before or after the sale with a similar asset, using the proceeds. The discussions entail the potential blocking of this mechanism for cryptocurrency transactions, alongside its application to stocks and other types of assets.
Tether Boosts Reserves with Bitcoin, Shifts from US Debt
Tether, the company behind the popular stablecoin Tether (USDT), has announced its intention to emulate MicroStrategy by diversifying its reserves and incorporating Bitcoin (BTC). The stablecoin issuer plans to bolster its reserves by investing in BTC and distancing itself from US government debts. Tether disclosed that it will allocate up to 15% of its net realized operating profits on a monthly basis to purchase Bitcoin. This announcement comes shortly after the company’s quarterly financial report, which revealed $1.5 billion in net profits. Tether clarified that it will store all of its Bitcoin in self-custody, with its current holdings amounting to $1.5 billion or approximately 2% of its total reserves at the end of Q1 2023. The company justified its choice of BTC by highlighting its track record as a long-term store of value, citing its significant price appreciation and resilience against traditional financial downturns.
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