Regulation
What is Trump and Harris’ stance on cryptocurrencies?
Former President Donald Trump told the audience in a cryptocurrency conference in Nashville, Tennessee, over the weekend, declared that he wants to make the United States the “cryptocurrency capital of the planet.”
The remarks pushed digital currency to the forefront of a presidency countryside where both major candidates are trying to create contrasts on hot-button issues. The political attention comes during a recovery phase for Bitcointhe most popular cryptocurrency, whose value has increased by 60% this year.
trumpwho opposed cryptocurrencies as president, has recently embarked on a blitz campaign in support of digital assets. In contrast, the likely Democratic nominee My life is nice has remained silent on the issue since President Biden ended his reelection bid more than a week ago and endorsed the vice president instead.
“This is a very timely issue,” Aaron Klein, senior fellow in economic studies at the Brookings Institute, told ABC News, pointing to key groups that disproportionately trade cryptocurrencies, such as young voters.
In response to ABC News’s request for comment, the Trump campaign praised the candidate’s support for cryptocurrencies and the tech sector in general.
“As the Bitcoin conference demonstrated, President Trump wants our nation to reclaim global leadership in technology, innovation and manufacturing. That includes cryptocurrency and other industries,” senior adviser Brian Hughes told ABC News in a statement. “Cryptocurrency innovators and others in the tech industry are under attack from Kamala Harris and Democrats who have placed unnecessary obstacles and burdens in the way of our nation’s next generation of industry leaders.”
The Biden campaign did not immediately respond to ABC News’ request for comment on the matter.
Here’s what to know about Trump and Harris’ stance on cryptocurrencies:
What is former President Donald Trump’s stance on cryptocurrencies?
During his term, Trump has harshly criticized cryptocurrencies. In 2019, he derided digital assets in a send on X as “highly volatile and based on nothing”.
“Unregulated cryptocurrencies can facilitate illicit behavior, including drug trafficking,” Trump added.
Lately, however, Trump has been full-throated in his support for cryptocurrencies. Speaking at the annual Bitcoin Conference on Saturday, Trump promised to streamline cryptocurrency regulation and establish the federal government’s first National Strategic Bitcoin Reserve.
Trump also said he would replace Securities and Exchange Commission Chairman Gary Gensler, who many cryptocurrency advocates dislike for his hardline approach to cryptocurrency regulation.
“Trump seems to have changed his mind and is going all in on cryptocurrencies,” Eswar Prasad, a professor at Cornell University who studies digital assets, told ABC News.
In recent weeks, Trump has received support from some prominent Silicon Valley figures who support cryptocurrency, including Tesla CEO Elon Musk, a prominent cryptocurrency advocate. Other Trump supporters include Cameron and Tyler Winklevoss, billionaire cryptocurrency entrepreneurs who gained notoriety in the early 2000s after suing Facebook CEO Mark Zuckerberg.
In a send On Monday, Cameron Winklevoss declared on X: “We are going to make America and Bitcoin greater than ever before.”
Vice President Kamala Harris delivers a speech during a campaign event in Pittsfield, Massachusetts, on July 27, 2024. Stephanie Scarbrough/AP
Prasad said Trump’s backtracking on cryptocurrencies is in line with his attempt to appeal to Silicon Valley donors and signal a deregulatory approach to business.
“He appears to see the cryptocurrency industry as a source of funding for this campaign and also as being in line with his anti-big government message,” Prasad said.
What is Vice President Kamala Harris’ stance on cryptocurrencies?
It remains difficult to know exactly where Harris stands on cryptocurrencies, experts told ABC News.
The Biden administration has been widely perceived as tough on cryptocurrencies, they noted, citing the federal criminal prosecution of FTX founder Sam Bankman-Fritto and Gensler’s cryptocurrency regulations. However, experts told ABC News it’s unclear how closely Harris plans to align herself with Biden on the issue.
Democrats are divided on cryptocurrency policy, said Klein, of the Brookings Institute. Progressive Sen. Elizabeth Warren, D-Mass., has been a fierce critic of cryptocurrencies, for example, while tech entrepreneur and Harris supporter Mark Cuban has sought a friendlier stance on digital assets, Klein noted.
“The Democratic Party is divided,” Klein said.
Harris may ultimately seek to soften the Biden administration’s stance on cryptocurrency, experts said. Harris’ campaign has reached out to major cryptocurrency firms in an effort to “reset” relations between the industry and the Democratic Party, the Financial Times reported Saturday.
“I suspect the Harris campaign will have some level of strategic ambiguity between the Biden administration’s line and what the cryptocurrency industry wants,” Klein told ABC News.