Trump Expands Bitcoin Support With No Tax Promise For Digital Transactions

With just six days remaining until the US presidential election, former President Donald Trump has intensified his support for Bitcoin (BTC) and the broader crypto industry. 

In a recent statement aimed at taxpayers, Trump proposed significant changes that could reshape the landscape for digital asset transactions in the United States, especially following years of heightened scrutiny from 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 capital gains taxes on Bitcoin transactions when used for purchases. 

In a social media post on X (formerly Twitter), Michael Saylor, co-founder of MicroStrategy and a well-known Bitcoin advocate, quoted Trump’s latest statement on the matter:

They have them paying tax on crypto and I don’t think that’s right. #Bitcoin is money, and you have to pay capital gains tax if you use it to buy a coffee? I was talking with a friend; he said ‘it really shouldn’t be taxed,’ and I agree.

Trump’s remarks come as he widens his lead against Vice President Kamala Harris on Polymarket, a crypto prediction market where bettors give him a 66% chance of winning the election. 

However, traditional polls tell a different story, indicating that Harris holds slight leads in crucial battleground states like Michigan (48% to 43%) and Wisconsin (51% to 45%). According to a recent CNN poll, both candidates are tied in Pennsylvania at 48% each, underscoring the tight race as election day approaches.

Analyst Warns Harris Victory Could Impact BTC Prices

Trump’s approach to cryptocurrency has garnered considerable support from the industry. His recent remarks starkly contrast to the more cautious stance taken by Harris, who has offered a less defined policy direction on digital assets.

Notably, Trump has launched his crypto venture, World Liberty Financial (WLF), and intends to fire SEC Chair Gary Gensler on his first day in office. 

The former President has also proposed making Bitcoin a strategic reserve asset to help reduce the national debt, which currently stands at $35 trillion, receiving bipartisan interest, with lawmakers in Congress showing increased enthusiasm. 

Florida’s Chief Financial Officer, Jimmy Patronis, has even proposed allocating some of the state’s pension funds into cryptocurrency, particularly Bitcoin, inspired by Trump’s recent plans for the US with digital assets. 

While Harris has adopted a more cautious approach to crypto than President Biden, some analysts predict that a victory for Harris could lead to a decline in Bitcoin’s price. 

Michael Terpin, CEO of Transform Ventures, believes that the momentum for the Bitcoin price will continue regardless of the election outcome, suggesting further recoveries and the potential for new all-time highs. Terpin noted: 

There’s just too much momentum right now. We’re at the point of the cycle where it usually does go up quite a bit. I just think that Trump winning would make it quicker, faster, and higher.

At the time of writing, Bitcoin was trading at $71,930. 

Featured image from DALL-E, chart from TradingView.com