Main Points:
- Kamala Harris shows more support for cryptocurrency than Joe Biden but remains less pro-industry than Donald Trump.
- Harris promises a better regulatory environment for U.S. crypto businesses, but has unfavorable positions on taxes, Bitcoin mining, and self-custody.
- Donald Trump aims to make the U.S. the global capital of cryptocurrency and protect self-custody rights.
- Harris’ approach signals potential improvements, but her policies may still pose challenges for the crypto sector.
- Both candidates favor financial sanctions against foreign adversaries involved in cryptocurrency transactions.
As the U.S. presidential election approaches, the cryptocurrency industry is closely watching the candidates’ stances on digital assets. Kamala Harris, the current vice president, is positioned between the regulatory-heavy policies of Joe Biden and the industry-friendly approach of Donald Trump. While Harris presents a more favorable stance than Biden, her policies fall short of Trump’s overt support for cryptocurrency. This article explores how Harris’ policies could shape the future of the U.S. cryptocurrency landscape, comparing them to Trump’s vision.
Harris’ Promise of a Better Regulatory Environment
Kamala Harris has expressed a desire to improve the regulatory framework for U.S.-based cryptocurrency companies. Her approach contrasts with the more stringent measures enacted under the Biden administration, where over 100 regulatory actions were taken against the crypto industry by the Securities and Exchange Commission (SEC). Harris’ platform suggests that she might offer some relief to companies struggling under these policies, positioning her as a more favorable candidate than Biden.
However, this improvement comes with caveats. Harris has yet to offer strong support on critical issues like Bitcoin mining or the right to self-custody digital assets—areas where Trump has made clear promises.
Trump’s Pro-Crypto Position: Industry Over Government
Former President Donald Trump has positioned himself as the crypto industry’s advocate, proposing policies that would turn the U.S. into the world’s leading hub for digital assets. He has promised to remove regulatory burdens, specifically by vowing to fire current SEC Chair Gary Gensler, who has been a central figure in crypto regulation.
Trump’s agenda for the crypto sector is clear: he wants to encourage Bitcoin mining, framing it as an essential manufacturing activity for the U.S. economy. Moreover, Trump supports self-custody wallets, allowing individuals to manage their own digital assets without relying on third-party custodians. These policies are welcomed by crypto enthusiasts who view self-custody as a pillar of financial sovereignty in the decentralized economy.
Tax Policies and Crypto: A Stark Contrast
One of the most significant differences between Harris and Trump lies in their tax policies. According to Galaxy Research, Harris plans to reverse Trump’s tax cuts, a move that could raise capital gains taxes for cryptocurrency holders. Her stance is seen as “hostile” towards the industry, particularly in contrast to Trump’s more lenient tax approach. This difference in tax policy is likely to impact investor behavior, with many crypto owners wary of higher taxes under a Harris administration.
Despite these differences, Harris is still seen as an improvement over Biden’s current policies. Her focus on emerging technologies, including blockchain, suggests that her administration could foster innovation while still maintaining some regulatory oversight.
A Shift in Regulatory Personnel and Potential Policy Changes
On October 2, SEC Enforcement Director Gurbir Grewal resigned, signaling a possible shift in the current administration’s approach to cryptocurrency regulation. While it is unclear how this will affect future policies, Harris has hinted at a more constructive approach than the Biden administration’s often adversarial stance.
This shift in personnel could offer an opening for the crypto industry to engage with policymakers and advocate for more balanced regulations. Harris’ position, though still strict in certain areas, may allow for more flexibility compared to Biden’s SEC-driven regulatory actions.
Harris and Trump: Similarities on Financial Sanctions and Foreign Policy
Despite their differences on domestic cryptocurrency policy, both Harris and Trump share a common stance on financial sanctions against foreign adversaries engaged in cryptocurrency transactions. Both candidates are likely to continue enforcing these sanctions to protect national security and prevent illicit financial activity. This bipartisan agreement indicates that regardless of the election outcome, the U.S. government will maintain a firm hand in overseeing cryptocurrency’s role in global financial markets.
This shared position has broader implications for decentralized finance (DeFi) protocols that operate in a “permissionless” environment, where transactions occur without traditional regulatory oversight. Both candidates are expected to support anti-money laundering (AML) and Know Your Customer (KYC) regulations, limiting the appeal of such DeFi platforms to U.S. investors.
The Importance of Cryptocurrency Policy in Voter Decisions
A recent survey highlighted that 75% of cryptocurrency holders believe a candidate’s stance on digital assets will influence their vote. This underscores the growing importance of cryptocurrency as a mainstream political issue in the U.S. election. Harris’ policies may appeal to moderate voters who want a balanced approach—offering both regulatory oversight and opportunities for growth in the crypto sector.
On the other hand, Trump’s more aggressive pro-crypto stance could attract voters who prioritize financial freedom and are opposed to heavy government intervention in the cryptocurrency market.
In conclusion, while Kamala Harris presents a more favorable stance on cryptocurrency than the current Biden administration, her policies do not go as far as Trump’s pro-industry approach. Harris’ focus on improving the regulatory environment signals potential for growth, but her unfavorable views on taxes, Bitcoin mining, and self-custody wallets could create obstacles for the industry.
As the U.S. presidential race heats up, cryptocurrency holders and industry players will closely watch how these policies evolve. The outcome of the election will have significant implications for the future of cryptocurrency in the U.S., determining whether the industry will face continued regulatory challenges or enjoy a period of growth and innovation under more favorable leadership.
