Under Kamala Harris’ leadership, the crypto sector in the US might receive more favorable treatment compared to the current administration led by Joe Biden.
Harris More Supportive Than Biden, Trump ‘Undoubtedly’ More Favorable
Recently, Alex Thorn, Head of Research at Galaxy Research, published a detailed policy scorecard on X, comparing the crypto and blockchain policy positions of the Biden administration to those of a potential Kamala Harris-Tim Walz administration and the Donald Trump-JD Vance administration.
Thorn emphasized that while a Trump presidency would clearly be more beneficial for the crypto sector, a win for Harris could still provide better support than Biden’s current approach. He assessed the potential risks of a Harris presidency as ‘limited.’
For example, the Biden administration has adopted a vague regulatory policy regarding the classification of digital assets as securities, leaving the U.S. Securities and Exchange Commission (SEC) to address matters individually.
Conversely, the Harris/Walz administration is anticipated to be ‘slightly positive,’ as indicated by Harris’ recent endorsements of innovative technologies such as AI and digital assets. In contrast, Trump has committed to replacing SEC Chair Gary Gensler with a more crypto-friendly candidate.
Another aspect is the differing perspectives on Bitcoin (BTC) mining. While the Biden administration has introduced a proposal for a 30% tax on mining activities, Harris is expected to hold a ‘slightly better’ position than Biden due to her ties in Silicon Valley.
Importantly, Trump is a staunch advocate of Bitcoin mining, framing it as domestic production and promising that Bitcoin will be “manufactured in America.”
Although neither the Biden nor Harris administrations are likely to adopt a covert stance against crypto self-custody, the Biden-led U.S. Treasury has sought to designate non-custodial wallet providers as money transmitters. On the other hand, Trump has explicitly pledged to safeguard self-custody rights, as mentioned in a speech in Nashville in July 2024.
The Biden administration has expressed interest in establishing regulations pertaining to stablecoins, proposing that banks should hold exclusive rights to issue them.
Harris is expected to align with Maxine Waters’ position, advocating for stablecoins to be backed by secure reserves, such as short-term T-bills, involving the Federal Reserve and large banks in issuance. Conversely, Trump prefers allowing non-bank entities to issue stablecoins.
Harris Leaving No Stones Unturned to Woo Crypto Voters
While many believe that a Trump victory would greatly benefitdigital asset values and the overall industry, Harris has made efforts to engage crypto voters.
She recently outlined her economic proposals, pledging to support regulatory efforts related to crypto and digital assets. On top of that, Harris has received political contributions amounting to $1 million in XRP from Ripple co-founder Chris Larsen.
Echoing Thorn’s viewpoint, trading firm QCP Capital remarked that a Harris win might not be as detrimental for crypto investors as some might expect. At the moment, BTC is trading at $66,412, reflecting a 0.8% increase over the past 24 hours.
Featured Image from flickr.com, Chart from TradingView.com
