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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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In the lead-up to the 2024 U.S. presidential election, Galaxy Digital, a leading cryptocurrency investment firm, has released a policy scorecard assessing the positions of key presidential candidates on major crypto issues.
This scorecard ranks former President Donald Trump as the most favorable candidate for the cryptocurrency industry.
According to the report, while Vice President Kamala Harris presents some hope for improvement over President Joe Biden’s crypto stance, Trump’s policies are seen as having “explosive upside” potential for the digital asset sector.
Trump’s Pro-Crypto Agenda is The Best For Crypto: Galaxy Digital’s Policy Scorecard
Donald Trump’s position on cryptocurrency, as laid out by Galaxy Digital, positions him as the most supportive of the candidates.
His approach to Bitcoin mining, in particular, has garnered praise from the crypto community, with Trump viewing mining as an integral part of the “domestic manufacturing” landscape.
Trump has actively engaged with miners and even received donations from them. This is a critical distinction from the Biden administration, which has proposed a 30% tax on Bitcoin mining, a move seen as detrimental to the industry.
Trump’s pro-mining stance is expected to not only support existing operations but also attract more investments into the U.S. crypto-mining ecosystem.
In addition to his mining policies, Trump’s approach to taxes also places him ahead of his competitors.
The scorecard suggests that his administration would provide clearer and more favorable tax regulations for digital assets.
In contrast, Harris has voiced her intent to roll back some of the tax cuts introduced during Trump’s presidency, which could tighten regulations around digital asset transactions.
Although Harris is seen as more open to dialogue compared to Biden, her potential tax policies remain a concern for the crypto industry.
Banking regulations are another key area, Trump has pledged to end the controversial “Operation Chokepoint 2.0,” a policy accused of restricting banking access for crypto companies.
He believed in the need for national banks to engage with blockchain technology and has been a vocal opponent of central bank digital currencies (CBDCs).
Harris, while more measured in her approach, has shown a willingness to soften some of Biden’s harsher restrictions. However, her campaign hasn’t explicitly addressed the issue of banking access for crypto firms.
Harris’s Opportunity for Growth and Limited Downside Risk
Despite Trump’s dominance in Galaxy Digital’s scorecard, Vice President Kamala Harris presents a relatively favorable outlook for the crypto industry when compared to President Biden.
Harris’s campaign is seen as less hostile toward crypto, particularly in areas like self-custody and banking regulations.
While her stance on Bitcoin mining remains less defined, Harris has positioned herself as a candidate open to finding bipartisan solutions for regulating cryptocurrency.
In a recent speech to Black entrepreneurs, Harris stressed the importance of providing Black-owned businesses with access to digital asset markets as a tool for building generational wealth.
Galaxy’s report notes that while Harris’s policies may not provide the same level of support as Trump’s, they do not pose significant downside risk for the industry either.
Her approach to regulation, though cautious, may allow for incremental improvements in areas like self-custody and banking access.
However, there remains uncertainty over how far her administration would go in supporting the broader crypto ecosystem.
Notably, a recent report shows that Trump is leading Harris by 10 Points in the Presidential Race, and the support from the crypto community can also be seen as Trump’s crypto project gains over 100,000 signups ahead of the token launch.
