With the US presidential election just six days away, former President Donald Trump has stepped up his support for Bitcoin (BTC) and the broader crypto industry.
In a recent statement directed at taxpayers, Trump proposed significant changes that could reshape the digital asset transaction landscape in the United States, especially after years of intense scrutiny by regulators.
No Capital Gains Tax on Bitcoin Purchases
Trump’s commitment to making the US the “crypto capital of the world” includes a recent proposal to eliminate the capital gains tax on the sale of Bitcoin when it is used for purchases.
In a social media posts on X (formerly Twitter), Michael Saylor, founder of MicroStrategy and well-known Bitcoin advocate, quoted Trump’s recent statement on the matter:
They are taxing crypto and I don’t think that is right. #Bitcoin is money, and you have to pay capital gains tax if you use it to buy coffee? I was talking to a friend; he said ‘it’s not really worth the tax,’ and I agree.
Trump’s speeches come as he he increased his lead against Vice President Kamala Harris on Polymarket, a crypto prediction market where bettors gave her a 66% chance of winning the election.
However, traditional surveys tell a different story, showing that Harris has narrow leads in key swing states like Michigan (48% to 43%) and Wisconsin (51% to 45%). According to a recent CNN poll, both candidates are tied in Pennsylvania by 48% each, underscoring a tight race as election day approaches.
Analyst Warns Harris Win May Affect BTC Prices
Trump’s approach to cryptocurrency has paid off big support from industry. His latest remarks stand in stark contrast to the predictions of Harris, who has offered less defined policy guidance on digital assets.
Notably, Trump launched his crypto business, World Liberty Financial (WLF), and intends to fire SEC Chairman Gary Gensler on his first day in office.
The former President also proposed to make Bitcoin a strategic asset to help reduce the national debt, which currently stands at $35 trillion bipartisan interestlawmakers in Congress are showing more enthusiasm.
Florida’s Chief Financial Officer, Jimmy Patronis, still has proposed allocating some of the state’s pension funds into cryptocurrency, especially Bitcoin, inspired by Trump’s recent plans in the US for digital goods.
Although Harris has taken a more cautious approach to crypto than President Biden, some analysts predict that Harris’ victory could lead to a fall in the price of Bitcoin.
Michael Terpin, CEO of Transform Ventures, you believe that Bitcoin price momentum will continue regardless of the outcome of the election, suggesting further recovery and the possibility of new all-time highs. Terpin commented:
There is so much pressure right now. We’re at a point in the cycle where it’s usually going up a little bit. I just think that a Trump win will make it faster, faster, and more.
At the time of writing, Bitcoin was trading at $71,930.
Featured image from DALL-E, chart from TradingView.com