As the U.S. presidential elections approach, the candidates’ positions on cryptocurrency are becoming a notable point of contrast.
Republican candidate Donald Trump and Democrat Kamala Harris have expressed differing views on the industry, which could significantly influence the regulatory environment for digital assets in the U.S.
Harris’s Stance on Cryptocurrency
Kamala Harris, currently serving as Vice President under President Joe Biden, has taken a somewhat friendlier stance on crypto compared to her boss.
While not as pro-industry as Trump, Harris has indicated a willingness to improve the regulatory landscape for U.S.-based crypto firms.
According to a report by Galaxy Research, she’s aiming for a more constructive approach than the Biden administration, which has been notably aggressive in crypto regulation through the SEC, initiating over 100 regulatory actions against industry players.
In recent months, Harris has signaled a desire for the U.S. to maintain dominance in emerging technologies, including blockchain, which could translate to a softer regulatory stance. However, she remains less favorable on key issues like Bitcoin mining, self-custody of assets, and tax policies.
For instance, Harris has proposed reversing Trump’s tax cuts, which may lead to increased capital gains taxes for crypto holders.
Trump’s Crypto Vision
In contrast, Trump has made bold promises to boost the U.S. crypto sector. His campaign includes ambitious plans to make America the “crypto capital of the world.”
He has pledged to fire SEC Chair Gary Gensler, who has led the charge on crypto regulation under Biden. Trump has also expressed strong support for Bitcoin mining, likening it to manufacturing and insisting more Bitcoin should be “made in America.”
Additionally, Trump has voiced support for self-custody of digital assets, meaning that holders should be able to manage their assets without needing third-party custodians. This stance could resonate with the crypto community, which values personal control and privacy.
While both Trump and Harris appear committed to enforcing financial sanctions against foreign entities involved in crypto, their differences on other issues could shape the future of U.S. crypto policy.
The Launch of World Liberty Financial
Trump’s support for crypto extends to his backing of a new decentralized finance (DeFi) platform called World Liberty Financial (WLFI).
The project claims to have seen over 100,000 sign-ups ahead of its token launch on October 15. The WLFI token, based on Ethereum’s ERC-20 standard, is designed to serve as the platform’s governance asset.
The platform aims to offer lending, borrowing, liquidity pools, and stablecoin transactions. Initially open only to accredited investors in the U.S., World Liberty Financial will expand its reach following a proposal to launch as an Aave instance on the Ethereum network.
In a recent X space, Zak Folkman, head of operations, outlined the project’s roadmap, including plans to distribute a large portion of the tokens to whitelisted members of the public. A leaked white paper revealed ambitions to raise $300 million through token sales, valuing the project at approximately $1.5 billion.
While Donald Trump Jr., the project’s “Web3 Ambassador,” has positioned World Liberty Financial as a response to what he calls a “Ponzi scheme” banking system, his father has promised to transform the U.S. financial landscape if elected.
A Turning Moment for U.S. Crypto Policy
The upcoming election could be pivotal for the U.S. crypto industry. According to Galaxy Research, a substantial portion of crypto owners say that candidates’ stances on crypto policy will influence their voting decisions.
As Trump leads Harris by a narrow margin on the decentralized betting platform Polymarket, and Harris leads Trump in national polls, the outcome remains uncertain.
Whoever wins in November, the next U.S. administration will likely play a defining role in shaping the future of cryptocurrency. While the nation watches, the crypto community waits to see whether the regulatory tide will shift, bringing new opportunities or challenges to an industry poised for growth.
