With just six days until the US presidential election, former President Donald Trump has stepped up his support for Bitcoin (BTC) and the broader cryptocurrency industry.
In a recent statement to taxpayers, Trump proposed significant changes that could change the landscape of digital asset transactions in the United States, especially after years of increased scrutiny from regulators.
No capital gains tax on Bitcoin purchases
Trump’s commitment to making the United States the “crypto capital of the world” includes a recent proposal to eliminate capital gains taxes on Bitcoin transactions used for purchases.
In social media post on X (formerly Twitter), Michael Saylor, co-founder of MicroStrategy and a well-known Bitcoin supporter, quoted Trump’s latest statement on the matter:
They’re making them pay cryptocurrency tax and I don’t think that’s right. #Bitcoin is money and if you buy coffee with it, do you have to pay capital gains tax? I was talking to a friend; he said it “really shouldn’t be taxed” and I agree.
Trump’s remarks come with him expands its advantage against Vice President Kamala Harris on Polymarket, a crypto prediction market where bettors give him a 66% chance of winning the election.
However, established polls say otherwise, pointing that Harris has a slight edge in key battleground states like Michigan (48% to 43%) and Wisconsin (51% to 45%). According to a recent CNN Pennsylvania poll, the two candidates are tied at 48%, underscoring a tight race as Election Day approaches.
The analyst warns that Harris’ victory could have an impact on BTC prices
Trump’s approach to cryptocurrency has gained significant praise support from the industry. His latest comments contrast sharply with the more cautious stance of Harris, who has proposed a less defined policy direction for digital assets.
It is worth noting that Trump launched his crypto venture, Global Financial Freedom (WLF) and intends to fire SEC Chairman Gary Gensler on his first day in office.
The former president also proposed making Bitcoin a strategic reserve component to assist reduce the national debt, which currently stands at $35 trillion bilateral interestwith lawmakers in Congress showing more enthusiasm.
Florida Chief Financial Officer Jimmy Patronis even did that proposed allocating part of state pension funds to cryptocurrency, in particular Bitcoin, inspired by Trump’s recent plans for the US with digital assets.
Although Harris has taken a more cautious approach to cryptocurrencies than President Biden, some analysts predict that Harris’ victory could lead to a decline in the price of Bitcoin.
Michael Terpin, CEO of Transform Ventures, he believes that Bitcoin’s price momentum will continue regardless of the election outcome, suggesting continued recovery and the potential to reach modern all-time highs. Terpin noted:
There are simply too many dynamics now. We are at a point in the cycle where there is usually significant growth. I just think a Trump win would make it faster, faster and higher.
At the time of writing, Bitcoin is trading at $71,930.
Featured image from DALL-E, chart from TradingView.com
