The upcoming US presidential election has drawn attention to the potential impact of the candidates’ crypto policies. According to Alex Thorn, head of research at Galaxy Digital, a Trump win could lead to explosive upside for the crypto industry. On the other hand, Vice President Kamala Harris is seen as offering limited downside risk, which is more favorable compared to the current Biden administration.
Thorn’s ‘policy scorecard’ highlights key differences between Harris and Trump on various issues such as taxes, Bitcoin mining, self-custody, and banking regulations. Harris has been described as extremely hostile towards taxes, while Trump is expected to bring more clarity to digital asset tax policies.
In terms of Bitcoin mining policies, Biden proposed a 30% tax on mining, whereas Harris has shown a more lenient approach. Trump, on the other hand, has been highly supportive of Bitcoin mining, which could benefit the industry significantly.
Banking policies also differ between Harris and Trump, with Harris potentially easing restrictions on banking access for the crypto industry. Trump, on the other hand, has pledged to end certain regulations and allow national banks to engage with blockchain technology.
When it comes to self-custody, both Harris and Trump have taken relatively supportive stances. While Harris has not made direct statements on the issue, Trump has vowed to protect self-custody rights, signaling a positive outlook for the industry.
While Bitcoin is expected to remain stable regardless of the election outcome, altcoins could see significant movement based on the regulatory environment. A Trump victory may bring regulatory clarity that benefits altcoins like UNI, while a Harris administration could pose risks to these assets.
Overall, Galaxy Digital’s analysis suggests that a Trump presidency has explosive upside potential for the crypto industry, while a Harris victory carries limited downside risk. It will be interesting to see how the election results impact the future of the crypto market.