Alex Thorn, head of research at Galaxy Digital, recently shared a ‘policy scorecard’ that evaluates the stances of US presidential candidates towards the crypto industry. According to the scorecard, Vice President Kamala Harris winning the election would have limited downside risk for the industry and be more favorable than the current Biden regime. However, former US President and candidate Donald Trump presents the most favorable approach to crypto.
Galaxy Research analysts are optimistic about Harris’ potential term, suggesting that her actions so far indicate a friendlier approach towards the crypto industry compared to President Joe Biden.
One of the major differences between Harris and Trump lies in their policies on taxes, Bitcoin mining, self-custody, and banking regulations. Harris has been described as “extremely hostile” towards taxes, vowing to roll back Trump’s tax cuts for the wealthiest Americans. On the other hand, Trump is expected to provide more clarity on digital asset tax policies.
In terms of Bitcoin mining policies, Harris has been more lenient in her campaign rhetoric compared to Biden, while Trump has shown strong support for Bitcoin mining, considering it as part of “domestic manufacturing.”
Banking policies also differ between Harris and Trump, with Harris potentially easing Biden’s “Operation Chokepoint 2.0” and acknowledging the importance of banking access for the crypto industry. Trump, on the other hand, is seen as extremely supportive of the industry, pledging to end Operation Chokepoint 2.0 completely and allowing national banks to engage with blockchains.
When it comes to self-custody, both Harris and Trump have relatively similar policies. Harris has not made direct statements on the issue, while Trump has vowed to protect self-custody rights during a recent Bitcoin conference.
Galaxy’s analysis is based on public statements and reports from sources close to both campaigns. While Bitcoin is likely to remain unaffected regardless of the election outcome, altcoins could see different outcomes. A Trump victory could bring regulatory clarity that benefits altcoins, while a Harris administration may pose risks to these assets.
Overall, a Trump presidency is seen to have “explosive upside” potential for the crypto industry, while a Harris victory is viewed as having limited downside risk. Tokens like Uniswap’s UNI stand to benefit from regulatory reforms if Trump wins the election.
It is important to consider the different policies and approaches of the candidates towards the crypto industry when evaluating the potential impact of the election on the market.