Bitcoin Bounces at $20,000 as Biden Administration Fights 50 Million US Citizens Owning Cryptocurrency

Bitcoin just bounced off a historic $20,000 support line as the Biden administration launches an all-out assault on cryptocurrency and the 50 million registered US voters who own digital assets.

The latest joke stems from President Biden’s tax plan upon arrival, which would place a 30% tax on energy used for Bitcoin mining, the New York Times reports.

The plan would also prevent crypto investors from selling assets at a loss and quickly repurchasing them to save on taxes, Bloomberg reports.

This follows news that the US government just sent $217 million in confiscated Bitcoin to the crypto exchange Coinbase, where it could be sold on the open market.

It also comes amid the liquidation of crypto-friendly bank Silvergate, which cited pressure from the US Justice Department and other regulators, as well as the collapse of crypto exchange FTX in its decision to close its doors.

The Biden administration’s attempts to hammer the exponentially growing and global crypto industry follow a months-long campaign by U.S. Securities and Exchange Commission Chairman Gary Gensler to make every digital asset, except Bitcoin, a security. label.

One such attempt was dismissed this week by a judge in New York, who accused the agency of halting bankruptcy proceedings for embattled cryptocurrency lender Voyager by alleging that a token designed to help customers pay back may be a security.

Chairman Gensler is also at odds with the head of the Commodities Futures Trading Commission, Rostin Behnam, who just reiterated his belief that the second largest crypto asset, Ethereum, is not a security.

Meanwhile, Grayscale’s Bitcoin ETF lawsuit against the SEC may be moving in a positive direction.

This week, a panel of judges in the District of Columbia Court of Appeals questioned why the SEC would allow the launch of a Bitcoin futures ETF, but not a Bitcoin spot ETF.

Said Judge Neomi Rao, per Reuters:

“It seems like it’s fine for an agency to say okay, we need a little more information, but it seems like there’s quite a bit of information here about how these markets work together, and the SEC hasn’t made any statement … that the petitioners here are wrong.”

The price of Bitcoin has suddenly dropped amid pressure from the US government to pressure the crypto industry and its investors.

The leading crypto asset started the week at $22,400 and is worth $20,342 at the time of publication, down 7.5% in the past 24 hours.

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