Kamala Harris Eyes Support for Crypto Industry Growth, Senior Campaign Adviser Says

Highlights:

• Kamala Harris supports more favorable crypto policies, according to her campaign adviser.
• Brian Nelson highlights the crypto industry’s need for stable regulatory rules.
• Crypto firms spent $119 million in 2024, with significant donations backing Trump.

Vice President Kamala Harris’s senior campaign adviser, Brian Nelson, said in an interview on Wednesday with the Bloomberg News roundtable at the Democratic National Convention that Harris would “support policies that ensure that emerging technologies and that sort of industry can continue to grow.” Nelson mentioned that the industry needs “rules of the road” after several firms collapsed, hinting at the cryptocurrency exchange FTX.

Vice President Kamala Harris will back measures to help grow digital assets, a policy adviser to her campaign said, highlighting efforts to court an emerging cryptocurrency industry expanding its political influence. https://t.co/SmmlfDLv1j

— Bloomberg Crypto (@crypto) August 21, 2024

Before this update, Harris and her team had not officially endorsed policies to grow the sector. However, signs indicated a possible shift toward a more favorable stance on cryptocurrency. Crypto community members, including former Uphold CEO J.P. Thieriot, have actively supported Harris. They believe she could create a more favorable regulatory environment for crypto than the Biden-Harris administration.

Trump Vs. Harris

Crypto has become a major election issue for the industry. Former President Donald Trump is seen as supportive of the industry, promising to end an “unlawful and un-American crackdown” on the US crypto sector. The Republican candidate has also made strides with the industry by choosing crypto-friendly J.D. Vance as his running mate and pledging to support Bitcoin miners.

Trump has promised to fire SEC Chair Gary Gensler and replace him with crypto-friendly regulators. He also wants to set up a crypto advisory council and create a stablecoin framework to support the US dollar while opposing a US-based CBDC.

Trump said at the Bitcoin Conference that if elected in November, he would fire Gary Gensler, prevent the U.S. from selling its Bitcoin holdings, and build a strategic Bitcoin reserve. Trump also praised the development of stablecoins and support for the Bitcoin mining industry…

— Wu Blockchain (@WuBlockchain) July 27, 2024

Meanwhile, Harris’ senior aide has shown a willingness to support the sector but hasn’t detailed which parts of the industry she will encourage or who she will work with on the regulations. Democratic candidate Harris has started engaging with the crypto industry, expressing her team’s interest in learning more about crypto. On Aug. 14, a grassroots effort called Crypto4Harris held a town hall to “do a formal reset.” The current Biden administration’s approach to regulating digital assets has faced criticism from some in the crypto industry.

In a recent campaign speech in North Carolina, Harris alluded to a balanced approach without mentioning digital assets or crypto. She pledged to “cut needless bureaucracy and unnecessary regulatory red tape.” Harris also emphasized promoting “innovative technologies” while protecting consumers and ensuring a stable business environment with consistent, transparent rules.

Kamala Harris on the campaign trail in North Carolina:

"I will focus on cutting needless bureaucracy and unnecessary red tape, and encouraging, and encouraging innovative technologies while protecting consumers."pic.twitter.com/moXfG0MjRO

— The American Conservative (@amconmag) August 16, 2024

The crypto industry feels burdened by Biden’s regulations. In response, it’s trying to boost its political influence with big campaign donations. This change comes as Trump, Harris’ opponent, appeals to crypto fans with promises of friendlier regulations. Harri’s campaign is seen as an opportunity to reset crypto policies. This comes after the Biden administration’s regulations stirred tension with the tech industry.

Crypto Firms Spend $119 Million in Election Donations

According to a report from Public Citizen released Wednesday, crypto firms spent $119 million in 2024, with most of the funds going to super PACs, particularly Fairshake Pay. The group said crypto firms’ spending is the second highest in total election-related expenditures.

Some major crypto industry figures have backed Trump with significant financial support. Gemini co-founders Cameron and Tyler Winklevoss donated $2 million in bitcoin to Trump. On X, Cameron Winklevoss announced his intention to vote for Trump, praising the former president as “pro-bitcoin, pro-crypto, pro-business.”