Alex Thorn, Head of Research at Galaxy Research, released a policy scorecard comparing the positions of Joe Biden, Kamala Harris and Donald Trump on major cryptocurrency issues.
What Happened: Based on all the public statements, intelligence from campaign personnel, and public and private signals from the campaign, Thorn sees limited downside risk from a Harris victory, but potential explosive upside if Trump wins.
Bitcoin BTC/USD should fare well regardless of the election outcome, but altcoins disproportionately stand to benefit from a Trump win.
Scoring Joe Biden's Hostile Approach
Thorn highlighted the Biden administration’s consistent support for the Securities and Exchange Commission’s (SEC) regulatory approach, while offering only mild verbal backing for a market structure bill aimed at providing clarity. Regarding Bitcoin mining, the administration proposed a 30% tax on mining operations and released research and reports critical of the industry’s electricity consumption.
Under Biden’s direction, banking regulators have been prohibited—or indirectly pressured—not to handle digital assets, effectively preventing crypto firms from accessing banking services, a move dubbed “Operation Chokepoint 2.0.“
Furthermore, the administration established a presidential working group on stablecoins to formalize regulations, but the framework favors only banks as potential issuers.
Scoring Harris’s and Walz’s Mixed Approach
Vice President Kamala Harris recently expressed support for fostering innovative technologies like artificial intelligence and digital assets while prioritizing consumer and investor protection. Harris seems to favor a more constructive regulatory approach based on recent campaign statements.
While her stance on Bitcoin mining appears more favorable than President Biden’s, Harris emphasizes “climate justice” in her platform, which could lead to policies targeting high electricity consumers like Bitcoin miners.
Nonetheless, Thorn believes Harris’ strong ties to Silicon Valley and the growing overlap between Bitcoin mining and AI could soften her stance on energy consumption concerns. Under her administration, there may be a relaxation of “Operation Chokepoint 2.0,” as legal businesses need access to banking services for innovation to thrive.
Regarding stablecoin policy, the Democrats generally align with Rep. Maxine Waters‘ (D-CA) approach, seen as positive by Thorn. This framework promotes the idea of large banks being the primary issuers of stablecoins.
Scoring Trump’s and Vance’s Mostly Supportive Take
Donald Trump has pledged to remove SEC Chair Gary Gensler and replace him with someone who supports innovation in the digital asset space. He has shown strong support for Bitcoin miners, having met with them and raised funds on their behalf. Trump’s slogan, “Bitcoin will be made in America,” reflects his view that Bitcoin mining should be classified as domestic manufacturing.
Trump's first 2024 crypto policy statement opposed Central Bank Digital Currencies (CBDCs), and he promises to put an end to “Operation Chokepoint 2.0.” Under his administration, the Office of the Comptroller of the Currency (OCC) would allow banks to interact with blockchain technology.
On stablecoins, Thorn sees Trump favoring formalizing regulations but believes that issuers should include non-banks, expanding beyond the current focus on traditional banks.
What’s Next: As Benzinga’s upcoming Future of Digital Assets event on Nov. 19 will come in after U.S. elections, crypto-related regulations will be a major topic of discussion, as will be the influence of Bitcoin as an institutional asset class.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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