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 toward taxpayers, Trump proposed significant changes that might reshape the landscape for digital asset transactions in america, especially following years of heightened scrutiny from regulators.

No Capital Gains Tax On Bitcoin Purchases

Trump’s commitment to creating the US the “crypto capital of the world” features 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’ve them paying tax on crypto and I don’t think that’s right. #Bitcoin is money, and you’ve to pay capital gains tax should you use it to purchase a coffee? I used to be 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% likelihood of winning the election. 

Nonetheless, traditional polls tell a special story, indicating that Harris holds slight leads in crucial battleground states like Michigan (48% to 43%) and Wisconsin (51% to 45%). In response to a recent CNN poll, each 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 enterprise, World Liberty Financial (WLF), and intends to fireside SEC Chair Gary Gensler on his first day in office. 

The previous President has also proposed making Bitcoin a strategic reserve asset to assist 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 a number 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 on to a decline in Bitcoin’s price. 

Michael Terpin, CEO of Transform Ventures, believes that the momentum for the Bitcoin price will proceed whatever the election consequence, suggesting further recoveries and the potential for brand spanking new all-time highs. Terpin noted: 

There’s just an excessive amount of momentum without delay. We’re at the purpose of the cycle where it often does go up quite a bit. I just think that Trump winning would make it quicker, faster, and better.

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

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