In what appears to be a notable divergence from President Joe Biden’s stance on cryptocurrency, Vice President Kamala Harris has indicated her support for the growth of the cryptocurrency sector, marking a significant moment in the ongoing debate over the regulation of digital assets in the U.S. economy.
During a speech focused on the economy in Pittsburgh on Wednesday, Harris emphasized the importance of maintaining the United States’ technological leadership in blockchain technology. “We must continue to lead in blockchain, which underpins the trade of cryptocurrencies like Bitcoin,” Harris stated. The speech coincided with the release of a policy document from her campaign, in which Harris promised to “encourage innovative technologies like AI and digital assets,” making clear her openness to supporting the cryptocurrency industry.
Harris has faced growing pressure to address concerns surrounding cryptocurrency regulation, particularly given fears within the industry of a continued crackdown under her administration. The vice president’s statements sought to assure stakeholders that she would not adopt President Biden’s more cautious approach, which has been perceived as hostile by some crypto investors. Her words offered a reprieve to those concerned about tighter regulations, while still acknowledging the need to protect consumers from harmful practices.
Two campaign advisors, speaking anonymously, confirmed that Harris’ comments were part of a broader strategy aimed at reassuring investors that her presidency would not follow in Biden’s footsteps in terms of the industry’s regulation. The crypto sector, which has invested heavily in political donations and lobbying efforts, had been apprehensive about the Democratic party’s approach, but Harris’ remarks appear to suggest a more conciliatory tone.
Republican candidate Donald Trump, on the other hand, has accused Harris of being anti-crypto, despite her recent comments. Trump has actively courted support from the cryptocurrency community, vowing to end what he calls the “persecution” of the industry under the Biden administration. In contrast to his previous stance against Bitcoin, Trump now pledges to appoint regulators favorable to the crypto sector and has even floated the far-fetched idea of using digital assets to pay down the U.S. national debt.
Crypto firms have played an outsized role in the 2024 election cycle, spending more than $119 million on federal elections this year, according to watchdog group Public Citizen. The industry’s massive political spending underscores the growing influence of digital assets on American politics, with both major parties vying for favor among investors and executives.
Aaron Klein, a financial technology expert at the Brookings Institution, described Harris’ approach as “smart campaigning on an issue that divides Democrats and where Trump is trying to make a play.” He noted that Harris appears to be signaling a potential break from President Biden and crypto skeptics within the party while leaving her policy options open.
While Harris has not laid out a detailed plan for regulating the industry, some view her recent remarks as a step toward a more balanced regulatory framework. “She talked about blockchain, which answers a lot of questions about crypto,” billionaire investor Mark Cuban, a Harris campaign surrogate, said in Pittsburgh. “She wants us to continue to be a technological leader in AI and crypto technologies.”
However, not all Democrats are on board with Harris’ pro-crypto messaging. Dean Baker, an economist at the Center for Economic and Policy Research, dismissed the idea that the U.S. should make cryptocurrencies more accessible. “This is just gambling,” Baker said, emphasizing concerns about illegal activities such as blackmail and drug dealing facilitated through cryptocurrencies.
Despite these criticisms, tech lobbyists remain hopeful that Harris’ connections to Silicon Valley will lead to a more favorable environment for the industry. Adam Kovacevich, CEO of the tech industry trade group Chamber of Progress, noted, “This is the clearest signal yet that Harris wants to reject Biden’s approach and instead regulate crypto to protect consumers.”
Whether Harris’ efforts will be enough to win over the cryptocurrency sector remains to be seen, but her remarks have certainly injected a new dynamic into the 2024 election. For now, the industry continues to watch closely as the race for the White House unfolds.
