In light of the upcoming 2024 U.S. presidential election, Galaxy Digital, a prominent cryptocurrency investment firm, has released a policy scorecard evaluating the positions of key presidential candidates on major crypto issues. The report ranks former President Donald Trump as the most favorable candidate for the cryptocurrency industry. According to Galaxy Digital’s assessment, Vice President Kamala Harris also shows promise for improving President Joe Biden’s crypto stance, but Trump’s policies are viewed as offering significant potential benefits for the digital asset sector. Trump’s pro-crypto agenda, particularly his supportive stance on Bitcoin mining and tax regulations, sets him apart from his competitors.
Trump’s approach to Bitcoin mining, which is seen as essential for domestic manufacturing, has received praise from the crypto community. Unlike Biden’s proposed 30% tax on Bitcoin mining, Trump’s policies are expected to nurture existing operations and attract more investments into the U.S. crypto-mining ecosystem. Additionally, Trump’s administration is predicted to introduce clearer and more favorable tax regulations for digital assets, a stark contrast to Harris’s intention to roll back some of Trump’s tax cuts, potentially leading to tighter regulations on digital asset transactions. While Harris is considered more open to dialogue compared to Biden, her proposed tax policies raise concerns among industry experts.
Another critical area where Trump outshines his competitors is banking regulations. He has pledged to end the controversial “Operation Chokepoint 2.0,” a policy that has restricted banking access for crypto companies. Trump advocates for national banks to explore blockchain technology and has opposed central bank digital currencies (CBDCs). Harris, while less aggressive in her approach, has hinted at relaxing some of Biden’s stringent restrictions. However, her campaign has not explicitly addressed the issue of banking access for crypto firms, leaving some uncertainty in the industry.
Despite Trump’s strong position in Galaxy Digital’s policy scorecard, Vice President Kamala Harris presents a relatively optimistic outlook for the crypto industry compared to President Biden. Harris’s campaign is perceived as less adversarial towards crypto, especially in areas like self-custody and banking regulations. While her stance on Bitcoin mining is not as clearly defined, Harris has shown a willingness to collaborate across party lines in regulating cryptocurrency. In a recent address to Black entrepreneurs, Harris emphasized the importance of granting Black-owned businesses access to digital asset markets for generational wealth building. Although Harris’s policies may not offer the same level of support as Trump’s, they are also not expected to pose major risks to the industry. Her cautious approach to regulation could bring incremental improvements in areas like self-custody and banking access.
In recent polling data, Trump is leading Harris by 10 points in the presidential race, reflecting significant support from the crypto community. Additionally, Trump’s crypto project has garnered over 100,000 signups ahead of its token launch, indicating growing interest and backing within the industry. As the election approaches, the crypto community continues to monitor candidates’ positions on key issues affecting the digital asset sector. While Trump emerges as the preferred candidate for many in the industry, Harris presents a more moderate alternative with potential for collaboration and incremental progress in crypto regulation. The outcome of the election will likely influence the future trajectory of cryptocurrency policies in the United States.
