02/11/2024
Trump vs Harris on Crypto: Everything You Need to Know
The U.S. is fast approaching one of the most consequential elections in its 248-year history — and the result could define the country’s direction for decades to come.
But beyond long-running issues such as jobs, wages, immigration, taxes and healthcare, one topic in particular has come into real focus during this campaign: crypto.
After years of heavy-handed enforcement by the SEC, and regulatory uncertainty for companies and consumers alike, this is an industry looking for solutions from the next administration.
In recent years, we’ve seen crypto become more of a bipartisan issue — with Democrats and Republicans alike pushing for America to cement itself as an industry leader.
And there’s a good reason why politicians are beginning to take notice of the sector: it’s home to a big chunk of undecided voters, and prospective donors with deep pockets.
Data from Consensys and HarrisX suggests 92% of crypto investors are planning to cast a ballot on November 5 — 11% of whom say this issue will determine who they support.
A further 12% said they would be much more likely to back a pro-crypto candidate, and given how the result could hinge on Electoral College votes in a small number of states, this matters.
For American voters still trying to make up their minds — and investors watching in interest from abroad — Cryptonews has compared the crypto stances of Donald Trump and Kamala Harris side by side to offer a clearer idea of what their presidencies could look like.
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What Do They Say About Crypto?
It’s fair to say we have a clearer idea of Donald Trump’s vision for crypto. That’s primarily down to two reasons: he’s explicitly courted the industry’s support, and he’s been in the race longer.
By contrast, Kamala Harris’s campaign was at a disadvantage from the get-go. Joe Biden abruptly pulled out of the race in July after a catastrophic TV debate performance, and she was only officially confirmed as the Democratic nominee a month later.
Voters have been looking for signs that Harris would embrace a new approach toward digital assets — and mark a clear departure from her predecessor’s stance.
While there have been some signs of progress here, it’s fair to say her support for crypto is nowhere near as emphatic as Trump’s appears to be.
But as these key quotes from both candidates below show, Trump hasn’t always been a huge fan of Bitcoin as he is now.
You’ll notice that Harris hasn’t actually gone on the record to talk about crypto that much — and given how Trump spoke at Bitcoin 2024 and has even released his own NFT collections in the past, she had little chance of matching his enthusiasm.
But you could argue that this nod to digital assets behind closed doors to donors, however brief and vague, is a strong hint that things will be different if she wins the keys to the Oval Office.
What Do They Say About Crypto Regulation?
While you may think that crypto firms would balk at the prospect of regulation, many entrepreneurs believe clarity would help the sector to grow — and improve the credibility of this asset class among everyday investors.
All of this means close attention is being paid to the policies that Kamala Harris and Donald Trump are suggesting if elected, as legislation could spell the difference between the U.S. becoming a crypto superpower or an irrelevance.
When it comes to quotes from both candidates, it’s only Trump who has spoken vocally about his plans. The Harris camp have offered an insight into their thinking through policy papers.
Let’s get a little bit of context on what both candidates are saying here. Trump has long railed against the SEC, and has vowed to fire its chair Gary Gensler “on day one” — a move that may be difficult to achieve in the eyes of some legal experts.
By contrast, that last-minute announcement from Harris came in a document outlining how her Democratic administration would support black men — and significantly, showed she accepts how crypto can be beneficial to demographics where financial inclusion is lower.
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What Are Their Plans Regarding Crypto?
Some in crypto circles have raised eyebrows that Harris has focused her crypto policies on one part of society, rather than referring to the whole of America.
But we can get a clearer idea of how her presidency would affect investors by delving into her tax policies.
Harris has previously pledged that taxes wouldn’t rise for households bringing in less than $400,000 a year, but there would be changes for investors with broader shoulders.
Those who earn more than $1 million annually could see their capital gains tax rate rise from 20% to 28%.
A particularly radical proposal that would affect an even smaller subset of Americans concerns taxing unrealized capital gains among those with a net worth above $100 million. That means there would be liabilities to pay on everything from property to stocks and crypto, even if it isn’t sold.
By contrast, Trump hasn’t formally unveiled any changes to capital gains as yet — but rumors abound that he’s in favor of a reduction from 20% to 15%.
One thing he has done is unveil a slate of crypto-specific policies, which include:
Stopping the U.S. government from selling Bitcoin seized from criminals, and establishing a “strategic reserve”
Establishing a dedicated Crypto Advisory Council to steer regulation
Blocking a central bank digital currency from launching in America
Taking steps to ensure all remaining BTC is mined in the U.S.
Questions have been raised about how achievable some of these ideas are — especially when it comes to taking complete market share over Bitcoin mining.
How Much Crypto Do They Hold?
Beyond the rhetoric seen on the campaign trail, it’s worth looking at the investment portfolios of both candidates. Why? Because it gives a sense of whether they’re putting their money where their mouth is.
Public disclosures help shed light on their strategies — and it’s pretty instructive to see whether or not they have exposure to digital assets, joining 17% of their fellow Americans.
So, when you compare both candidates side by side, we see that only Trump has taken the plunge to invest in crypto. And while Harris does hold exchange-traded funds, the latest filings suggest they don’t include ETFs tracking Bitcoin’s spot price — products that have proven hugely popular since being approved by the SEC back in January.
What Now?
America has a choice to make — and crypto forms but one part of the bigger picture.
Some economists have warned that some of Trump’s policies in other areas, namely surrounding tariffs, could ultimately spur inflation — and affect the crypto markets indirectly.
Critics have even claimed that Trump may not follow through with his campaign promises to the crypto community, and may have just been saying what they want to hear to win their support.
As election day draws nearer, one thing has become clear: there’s optimism in the crypto markets.
Whether the result is clear on the night or in the weeks and months that follow, the outcome could have a huge impact on Bitcoin’s value.
