Regulation
Kamala Harris’s Cryptocurrency Position: What We Know
Now that Kamala Harris is the frontrunner for the Democratic nomination, the cryptocurrency community is trying to figure out where the vice president stands on the industry.
There’s not much to go on. Harris has never spoken publicly about cryptocurrency, blockchain technology, or non-fungible tokens (NFTs), and the few indirect messages he’s sending don’t paint a clear picture.
First up, billionaire entrepreneur Mark Cuban She said In an interview, Harris’ campaign reached out to him to ask him questions about cryptocurrencies.
While nothing is confirmed, Cuban sees it as a sign of hope. He believes she may be more open to technological innovations like cryptography and artificial intelligence.
“The feedback I’m getting, but certainly not confirmed by the vice president, is that it will be much more open to business, [artificial intelligence]cryptocurrency and government as a service”, Cuban said Politician. “Changing policies changes the message and lets everyone know she’s in charge and open, literally, for business.”
But also David Bailey, CEO of today’s Bitcoin Conference confirmed Harris will not attend the Bitcoin Conference in Nashville this week, after speculation News broke on Tuesday that his campaign was in talks with event organizers to attend.
Bailey tweeted: “Sorry, but you can’t just screw our industry over for 4 years, push Operation Choke Point, enlist Gensler and Warren as your champions, and then pretend to be cool with Bitcoin. A major Democratic donor told me Kamala privately says “Bitcoin is money for criminals.”
Harris’s Technological Background
Harris has deep ties to the tech world, which could influence his views on cryptocurrencies.
Before becoming a senator in 2017, era Attorney General of California, where she focused on regulating the tech industry. During that time, she built strong ties in Silicon Valley, forming friendships with influential people like Laurene Powell Jobs and having family ties with Uber’s Chief Legal Officer, Tony West.
On Monday, former Meta executive Sheryl Sandberg called her “the strongest candidate to lead our country into the future.”
“Vice President Kamala Harris has already made history once, becoming the first Black and South Asian woman to hold office, and she will do so again in November,” Sandberg said. published on Instagram. “She is an accomplished leader, a staunch advocate for abortion rights, and the strongest candidate to lead our country forward. I am thrilled to support her.”
Netflix Executive Chairman Reed Hastings congratulated Harris and She said that “now is the time to win.”
Harris’s ascension to vice president in 2020 was seen as a positive move for tech companies and Silicon Valley. However, she has remained silent on the topic of cryptocurrency.
State of Cryptocurrency Regulation
While Harris has not spoken out on cryptocurrencies, the Biden administration’s stance has been loud and clear. Regulatory agencies, including the Securities and Exchange Commission (SEC), have stepped up enforcement, refusing to provide clear guidance to the industry.
In February 2023, the SEC reached up a $30 million settlement with Kraken for its cryptocurrency staking program, underscoring the SEC’s commitment to enforcing securities laws on stalking services. The following month, in March, the SEC released a notification from Wells to Coinbase and in June the SEC filed a lawsuit against Binance.
Ethereum has also emerged as a point of contention between the SEC and the Commodity Futures Trading Commission (CFTC) in 2023. The CFTC considers Ethereum futures products to be commodity assets, while the SEC was determined to classify ETH as a security.
In April 2024, Consensys, a US-based blockchain software company, sued the SEC to obtain a court ruling that ETH is a commodity.
Some Democrats supported the Financial Innovation and Technology for the 21st Century (FIT 21) bill, which gained bipartisan support and led many to believe that the Biden administration was warming to cryptocurrencies.
However, that optimism was short-lived. Things took a surprising turn when President Joe Biden decided to veto legislation to dismantle SEC Staff Accounting Bulletin (SAB) Rule No. 121, despite 11 Democrats joining 48 Republicans in favor.
SAB 121 mandated that financial institutions holding crypto assets must register them as liabilities, ensure that they maintain a one-to-one reserve of different assets, and maintain rigorous internal records. This rule makes it difficult and expensive for banks to offer crypto custody services on a large scale.
Opportunity for change
The crypto community is eager to hear more from Harris. The Digital Chamber, a digital asset trade association, has urged her to support crypto-friendly policies if she becomes the Democratic nominee. They argue that cryptocurrency is a nonpartisan issue and deserves support from both parties.
“There is a public perception that the party has a negative view of digital assets, largely due to the Biden/Harris administration’s particularly cautious and sometimes hostile approach to these transformative technologies,” the group says. he wrote in a letter to Harris on Monday. “Your anticipated candidacy for President represents an opportunity to change that perception.”
Meanwhile, others, like Gemini co-founder Tyler Winklevoss, aren’t convinced Harris would support Bitcoin and the cryptocurrency industry as a whole.
“Talk is cheap. He should start by firing immediately [SEC Chairman] Gary Gensler, by withdrawing all SEC enforcement actions against good actors and ending Operation Chokepoint 2.0,” he said She said. “He won’t, so he has no chance of winning back the cryptocurrency voting bloc. It’s time for a change.”
Meanwhile, Trump’s campaign is already accepting Bitcoin and other cryptocurrencies for donations, gaining growing support from industry leaders like Cathie Wood and Elon Musk.
Recently, at an event at Mar-A-Lago, he answered to concerns about the cryptocurrency brain drain the U.S. is experiencing. “We’ll embrace them if we want them to stay,” he said.
His comments have fueled optimism among cryptocurrency investors. Trump’s campaign moves, such as nominating Bitcoin-holding senator JD Vance as his vice-presidential candidate, are further cementing his pro-crypto stance.
Trump’s public statements of support have set a high bar for what the cryptocurrency industry can now expect from a presidential candidate. All eyes are now on Harris to see if she can live up to those expectations.