XRP holders have been advised not to fret over the capital gains tax proposal supported by Kamala Harris. According to experts and analysts, this new tax measure may not significantly affect holders of XRP and other underperforming digital assets. Here’s a breakdown of why this is the case and what it means for investors.

Kamala Harris’s Capital Gains Tax Proposal

On Wednesday, Kamala Harris, a Democratic presidential candidate, backed a revised version of the capital gains tax plan initially proposed by President Joe Biden. The revised tax would lower the rate from 39.6% to 28% for families earning over $1 million annually. Despite this reduction, the tax remains a point of contention among the cryptocurrency community, which is wary of any regulatory changes that might impact digital assets.

Capital gains tax is imposed on the profit an investor makes when selling assets at a higher price than their original purchase cost. For cryptocurrencies, this means any profit realized from selling coins at a higher value would be subject to this tax.

Altcoin Daily’s Perspective

Amidst these discussions, the crypto-focused YouTube channel Altcoin Daily, run by brothers Austin and Aaron Arnold, has suggested that XRP holders need not be overly concerned about the proposed tax. The channel has highlighted that certain cryptocurrencies, including XRP, have been underperforming recently. According to Altcoin Daily, XRP and several other cryptocurrencies on their list might not experience significant gains that would warrant concern over the new tax.

Other assets mentioned alongside XRP include HEX (HEX), Litecoin (LTC), Bitcoin Cash (BCH), JasmyCoin (JASMY), and EOS (EOS). The channel’s commentary implies that due to their underperformance, these assets may not generate taxable gains for their holders, at least in the near term.

XRP’s Underperformance

XRP, in particular, has seen considerable underperformance in the market. At the start of the year, XRP was valued at $0.6155 but has since dropped to $0.5541, reflecting a 9.97% decline year-to-date (YTD). Additionally, XRP is down 83% from its all-time high of $3.31, reached in January 2018. This persistent underperformance has fueled concerns about its future prospects.

Despite its struggles, some market experts remain optimistic about XRP’s potential. They believe that with the recent conclusion of the SEC lawsuit—which had placed significant legal pressure on the asset—XRP might break out of its prolonged consolidation phase.

Market Predictions and Future Potential

Market commentator EGRAG has recently expressed a bullish outlook for XRP, suggesting that it could experience a significant breakout and reach new highs by September 2025. EGRAG has outlined several potential price targets for XRP, including $10, $13, $17, and even $24. These projections indicate a potential for substantial growth, contingent on favorable market conditions and successful resolution of regulatory issues.

Comparative Performance and Broader Market Trends

Despite XRP’s current drop of 2.26% this month, it has shown relative resilience compared to Bitcoin (BTC), which has fallen by 3% in the same period. This comparison highlights XRP’s performance amid broader market challenges. While both cryptocurrencies are grappling with market struggles, XRP’s relative stability could be a positive sign for future performance.

Conclusion: What Does This Mean for XRP Holders?

For XRP holders, the proposed capital gains tax by Kamala Harris may not be an immediate concern given the asset’s current performance. As Altcoin Daily suggests, the underperformance of XRP and other listed cryptocurrencies may render them less susceptible to the impacts of capital gains taxation in the near term.