Trump vs Harris Crypto Market Policy Clash in 2024

- Differences in Cryptocurrency Tax Policies between Kamala Harris and Donald Trump - Trump's Support for Mining and Harris's Environmental Regulation Policies [Unblock Media]Alex Thorn, head of research at Galaxy Digital, shared a ‘policy scorecard’ based on the US presidential candidates’ stances toward the crypto industry. Trump and Harris show clear differences in their cryptocurrency policies, particularly in the areas of taxation, Bitcoin mining, and banking regulations. First, let's examine the tax policies of Harris and Trump. Harris aims to overturn the tax cuts for the wealthy established by Trump, intending to increase the capital gains tax to 28%. This change could result in a higher tax burden for high-asset individuals and cryptocurrency investors. Notably, she plans to tax unrealized capital gains upon the death of individuals with assets over $5 million, which could significantly impact estate planning. On the other hand, Trump proposes lowering the capital gains tax to 15% and providing clear tax guidelines for cryptocurrencies and digital assets. Trump's tax policies could create a more favorable environment for cryptocurrency investors. Next, regarding Bitcoin mining policies, while Harris has not made specific remarks about Bitcoin mining, she is likely to continue environmental regulations like the Biden administration's 30% electricity tax. Conversely, Trump considers mining a part of "domestic manufacturing" and plans to support it actively. He aims to collaborate with U.S. miners to develop tax incentives or energy support policies. Harris's less aggressive stance on mining support is due to her focus on energy efficiency and environmental conservation. Thirdly, let's look at the banking regulation policy 'Operation Chokepoint 2.0,' which is the Biden administration's effort to restrict banks from dealing with cryptocurrency companies. Harris might slightly ease this regulation, but Trump intends to abolish it entirely, thereby improving bank accessibility for cryptocurrency firms. Trump is determined to create an environment allowing national banks to cooperate freely with blockchain and cryptocurrency companies. Additionally, Trump is strongly opposed to Central Bank Digital Currencies (CBDCs). Regarding self-custody policies, there isn't a significant difference between the two candidates. Although Harris hasn't explicitly addressed this, some of her campaign advisors have shown a hostile stance toward it. Meanwhile, Trump showed a "somewhat supportive" stance, promising to protect self-custody rights at the Nashville Bitcoin Conference. Finally, let's consider the market impact. According to this analysis, Bitcoin is expected to remain largely unaffected by the regulatory discussions, regardless of whether Harris or Trump is elected. However, for altcoins, Trump's election could bring regulatory clarity, potentially leading to better performance than Bitcoin. Conversely, Harris's election might pose risks to altcoin assets. For instance, if Trump pushes for regulatory reforms, assets like Uniswap's UNI token could benefit. Overall, a Donald Trump election could bring significant changes to the cryptocurrency industry, while a Kamala Harris election may maintain a relatively stable approach.