Harris edges Biden but lags Trump on crypto policy

U.S. presidential candidate Kamala Harris is expected to adopt a more favorable approach to cryptocurrency regulation compared to current President Joe Biden, but her stance still falls short of Republican rival Donald Trump, according to a report from Galaxy Research on Oct. 14.

Harris has expressed interest in improving the regulatory landscape for U.S. crypto firms, though her views on key issues like Bitcoin (CRYPTO:BTC) mining, taxes, and self-custody are less favorable.

Alex Thorn, head of Galaxy Research, noted, “We’re optimistic that Harris could be more supportive than Biden has been,” though Trump remains more aligned with the industry.

Trump has been vocal about his intention to remove SEC Chairman Gary Gensler, following the SEC's enforcement of over 100 crypto-related cases during Biden’s administration.

Harris has recently emphasised blockchain technology as one of the emerging technologies she aims to prioritise for U.S. leadership.

This focus could lead to a more constructive regulatory approach than under Biden’s term, according to Galaxy’s analysis.

However, Harris remains critical of current tax policies in the industry and has signaled plans to reverse Trump’s tax cuts, which could raise capital gains taxes for cryptocurrency investors.

On the other hand, Trump has demonstrated stronger support for Bitcoin mining, advocating for more Bitcoin production within the U.S. and emphasising the protection of self-custody rights, areas where Harris has yet to provide clarity.

Both Harris and Trump have maintained firm positions on enforcing financial sanctions on foreign crypto transactions, limiting their support for decentralised finance (DeFi) protocols that bypass Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.