United States presidential candidate Kamala Harris is friendlier toward cryptocurrency than her boss, President Joe Biden, but not nearly as pro-industry as rival Donald Trump, Galaxy Research said on Oct. 14.

Harris promises to meaningfully improve the regulatory environment for US crypto firms but she holds unfavorable positions on other relevant issues, such as taxes, Bitcoin (BTC) mining, and self-custody, according to a post by Alex Thorn, Galaxy’s research head, on the X platform.

“[W]hile [T]rump is undoubtedly more favorable for the industry, we’re optimistic that [H]arris could be more supportive than [B]iden has been,” Thorn said.

Source: Galaxy Research

How Trump and Harris stack up on crypto policy

The November US presidential election pits Republican nominee Trump — who has said he wants to make America “the crypto capital of the world” — against Democrat Harris, who has been comparatively quiet on the industry.

Under Biden, a Democrat, the US Securities and Exchange Commission (SEC) has taken an aggressive regulatory stance on crypto, bringing upward of 100 regulatory actions against industry firms.

In July, Trump promised to “fire” Gary Gensler, who currently heads the SEC. 

Starting in September, Harris has upped her crypto game, listing blockchain technology among several emerging technologies where she wants the US to “remain dominant.”

That might translate into a softer crypto regulatory stance. Galaxy said “behind the scenes conversations… suggest Harris is targeting a slightly more constructive approach” than Biden.

On Oct. 2, the SEC’s head of enforcement, Gurbir Grewal, stepped down, possibly signaling a pivot from within the current administration. 

Three in four crypto owners said a candidate’s crypto policy will impact how they vote. Source: Gemini

According to Galaxy, Harris remains “extremely hostile” to the industry on taxes. Her plans include “rolling back Trump’s tax cuts,” likely resulting in higher capital gains taxes for crypto holders, Galaxy said.

Meanwhile, Trump has expressed support for Bitcoin mining, which he conflates with manufacturing. Trump wants more Bitcoin to be “made in America,” according to the report.

Trump has also pledged to “protect the right of self-custody,” meaning holding crypto assets in an owner-managed wallet instead of with a third-party custodian, Galaxy said.

Harris has not taken similarly favorable positions on Bitcoin mining or self-custody.

Notably, both candidates remain hawkish on imposing financial sanctions against foreign adversaries on crypto transactions, Galaxy said.

That likely limits both candidates’ support for “permissionless” decentralized finance (DeFi) protocols that flout Know Your Customer (KYC) or Anti-Money Laundering (AML) rules.

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