News View Non-AMP

Here’s How Kamala Harris Can Cause Crypto Market Crash

Published by
Vignesh S G

As the United States approaches a crucial presidential election, Democrats are struggling to create a clear and effective policy on cryptocurrency—one of the major topics in the campaign. This month’s crypto roundtable is seen as a last effort to win the support of the crypto community.

While Democrats work to win over crypto enthusiasts, Zac Townsend, CEO and co-founder of Meanwhile, has raised doubts about how serious the administration is about understanding the crypto industry. Townsend openly criticized Vice President Kamala Harris’ support for a proposed 25% unrealized capital gains tax, warning it could harm the sector. Should crypto investors be worried?

Unrealized Gains Tax: What You Should Know

The proposed tax aims to impose a 25% tax on the increased value of unsold assets, including cryptocurrencies. It mostly targets Americans with a net worth above $100 million. Currently, these unrealized gains aren’t taxed, but many liberals believe this is a loophole the wealthy use to avoid taxes.

Politically, Democrats seem to be aiming to please their liberal supporters with this policy, as they are a key part of the party’s base. But Townsend argues that the policy could have negative effects on the crypto market.

Investors to Leave?

Townsend’s main concern is that the tax could drive long-term investors out of the crypto market, causing a significant sell-off. Large investors often see crypto as a long-term investment, and the industry has outperformed traditional markets in recent years. However, this tax could make crypto less appealing for those looking at long-term gains.

Republicans Take the Lead

As Democrats debate their stance on crypto, Republicans, led by Donald Trump, have taken a clear position. Trump has promised to free the cryptocurrency industry from “unnecessary regulations.” Prominent figures like Eric Balchunas have voiced support for Trump’s approach, showing that many in the crypto community prefer the Republican stance.

What’s Next for Democrats?

With the election around the corner, Democrats can’t afford to enter with an unclear crypto policy. The upcoming October roundtable will be critical in shaping their strategy. Meanwhile, Republicans are gaining momentum as the party promising crypto freedom.

The crypto community is watching closely—will Democrats adjust their strategy in time, or will Republicans steal the show?

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

Recent Posts

Ripple Price Prediction as $200K XRPL Accelerator Goes Live

Ripple has just announced a big development for the XRP Ledger (XRPL) community in the…

July 4, 2025

Solana Price Analysis: Can Rising Institutional Demand Reverse Bearish Outlook?

Solana (SOL) price experienced heightened bearish sentiment during the second quarter and has since approached…

July 4, 2025

Bitcoin Demand Wanes: Fakeout or Parabolic Rally Ahead?

Bitcoin (BTC) has experienced reduced demand, especially from institutional investors despite the apparent net cash…

July 4, 2025

Senator Lummis Introduces New Crypto Tax Bill for Bitcoin Users and Miners

A powerful new crypto tax bill just landed in the U.S. Senate, and it could…

July 3, 2025

XRP Price Prediction: 35,000% Rally Possible if 2017 Trend Repeats

XRP is flashing strong bullish signals again. Over the past year, it has surged by…

July 3, 2025

Can Bitcoin (BTC) Break $200K Before This Top Crypto Achieves Its $5 Target?

Bitcoin (BTC) is charging toward a monumental $200,000 milestone, currently testing a critical $108,724 resistance.…

July 3, 2025