The cryptocurrency world has long faced a staunch critic of President Biden whose administration has blocked legislation that would help the industry and focused almost entirely on sanctions.
Now, after a historic weekend in which Biden withdrew his bid for re-election, the crypto industry must now consider Vice President Kamala Harris, who will almost certainly represent Democrats in the 2024 elections. Will the crypto world face more during Harris' presidency, or will Harris take a softer stance?
Harris comes from California, the technology capital of the country. Although he took to social media platforms for harassment while he was the state's attorney general, he has built a reputation as a pro-business politician by building a close relationship with executives like Meta's Sheryl Sandberg. Many in the crypto world hope he will take the same view into the election campaign and potentially into the White House.
“Given the increasingly bipartisan decisions we're seeing in Congress on cryptocurrency, I expect Harris' presidency will continue on this path,” Adam Minehardt, president of global government relations at the Stellar Development Foundation and former chief of staff to Nydia Velázquez, said in a message. said.
The Biden administration may not have started with an anti-crypto bias, but the collapse of FTX and the collapse resulting from Sam Bankman-Fried's political donations set off a chain reaction of hostility. A series of congressional hearings in late 2022 and early 2023 highlighted the risks blockchain platforms pose to consumers, and Biden-appointed government agencies such as Securities and Exchange Commission Chairman Gary Gensler filed lawsuits against some of the industry's largest companies.
Harris may have risen to California senator and then vice president as a pro-technology politician, but she has not taken a public stance on blockchain regulation. One crypto lobbyist, who spoke on the condition of anonymity to speak candidly about the evolving political dynamics, described the situation as “uncertain.” They said all eyes will be on Harris' choice of vice president, as well as what advisors she will surround herself with.
When Biden became president, many of his economic advisors came from progressive backgrounds and had worked specifically with Senator Elizabeth Warren, a harsh critic of crypto. Harris doesn't have the same connections. A crypto policy adviser and former Biden administration official who spoke on condition of anonymity said Harris has largely stayed out of economic policy.
“He doesn't have the same agreement that Biden and Warren have, or even close to Warren's team,” they said. Still, Warren endorsed Harris shortly after Biden withdrew her candidacy on Sunday.
If Harris is elected, it will be a matter of curiosity whether she will appoint a new chairman of the SEC, since Gensler's term will end in 2026. The crypto lobbyist said the Biden administration would be a “safer path” to keep its infrastructure in place.
Although Harris has yet to secure the Democratic nomination, Digital Chamber, a blockchain trade group, took the opportunity to publish a letter urging Harris to support crypto legislation. “We believe this technology is bipartisan and the Democratic Party should also support these innovations,” they wrote.
*This is not investment advice.