Harris Dips A Toe In The Crypto Waters — Is It Enough?

Presidential candidate Kamala Harris’ team finally broke their silence on crypto. But is the cautious approach too little, too late?

For months, Kamala Harris’ campaign has been notably quiet on the subject of crypto, leaving many to speculate about the Democratic candidate’s stance on the industry. However, the wait appears to be over.

According to a Bloomberg report this week, during a roundtable event at the Democratic National Convention in Chicago on Wednesday, Harris’ senior campaign adviser, Brian Nelson, provided some insight into her potential policies.

Nelson stated that Vice President Harris is “going to support policies that ensure that emerging technologies and that sort of industry can continue to grow.” Though the statement is vague and refers to “emerging technologies” more broadly, it represents the first public, official stance from the Harris team on the crypto industry.

Nelson also highlighted the need for clear regulations, referencing the fallout from events like the collapse of FTX in November 2022.

The Harris campaign’s so far cautious expression of support for the industry contrasts sharply with rhetoric and promises from Republican nominee Donald Trump, who has been outspoken in his endorsement of crypto during this campaign — though just a few years ago Trump called Bitcoin a “scam” and voiced concerns about it as a threat to the U.S. dollar. 

In a historic keynote speech at the Bitcoin conference in Nashville,Trump vowed to fire highly unpopular (in the crypto industry) Securities and Exchange Commission Chair Gary Gensler — a statement that was met with cheers from the audience. In the same speech, he also revealed his intention to create a national Bitcoin strategic reserve in the United States, if elected. In another instance, he pledged support for U.S. crypto miners.

Now with both candidates outlining their views on the industry, it’s evident that the future of crypto in the U.S. could take very different paths depending on the election outcome, making it a slowly emerging bipartisan issue.

Let’s dive deeper into what this could mean for the crypto industry and how Harris’ emerging position might shape the space moving forward.

Uphill battle for Harris

Harris faces a challenging environment for winning over crypto-focused voters, who are already disillusioned by the stringent policies under the current administration, especially what is perceived as the overly authoritarian stance of the SEC under Gensler.

The Harris team’s cautious but positive first public statement this week could be a turning point. But other recent events from the Harris campaign continue to overshadow the sentiment in the crypto community.

Just before the 2024 DNC kicked off in Chicago, and a few day’s before Nelson’s statement, the Democratic Party released its latest platform, a 92-page document very clearly written while President Biden was still running for a second term. The program didn’t include a single mention of crypto — a fact that was mostly criticized in the industry. Though some analysts saw the absence as a potentially positive development, most in the community interpreted it as a continuation of the approach to crypto under Biden.

Also this week, Harris received backlash from the crypto community in response to widely circulating misinformation that the VP had endorsed an earlier proposal from President Biden to tax unrealized capital gains.

The rumor gained traction on X and had many disgruntled crypto traders mistakenly believing that Harris supported a tax that could force them to liquidate significant portions of their portfolios. In reality, the potential tax policy — introduced by the Biden administration in March as a proposal for 2025 policy — would be unlikely to affect most U.S. crypto holders, as it would only apply to Americans with more than $100 million in wealth.

The week before, Harris faced criticism after failing to appear at a virtual town hall organized by the grassroots industry campaign Crypto4Harris. The event was widely seen as a missed opportunity to build trust and engage directly with the crypto community. The absence of Harris herself was particularly noticeable, leaving many viewers disappointed.

High-profile endorsements from figures like Mark Cuban and Senate Majority Leader Chuck Schumer, along with pre-recorded messages from Senator Gillibrand and others, failed to engage the audience, leaving them with more questions than answers.

In light of these recent incidents, the Harris team’s public statement on Wednesday in support of the crypto industry could be seen as a positive first step in addressing these concerns. But words alone won’t be enough, as evidenced by the public backlash.

Public backlash and mistrust

Despite the Harris campaign’s recent statement, many in the crypto community remain unconvinced and wary of placing their trust in her as a genuine advocate for the industry.

Charles Hoskinson, co-founder of Cardano (ADA), voiced sentiment that resonated with many: talk is cheap. He questioned the absence of specific policies or proposals and demanded “specific, tangible actions” to support the crypto industry.

Hoskinson’s skepticism was echoed by Eleanor Terrett, a journalist at Fox Business, who highlighted that Harris’ senior campaign adviser, Nelson, didn’t even mention “the words crypto or digital assets” in his statement.

On the other hand, there are voices like Adam Cochran, founder of Cinneamhain Ventures and an active industry commentator on X, who sees the statement as a positive first step, all things considered.

Cochran acknowledged the frustration within the community at the lack of concrete actions or policy, but urged people to recognize the import of the fact that this is the first time Harris’ campaign has addressed crypto officially in any form. However, even his attempt to inject optimism was met with backlash.

Critics were quick to dismiss Cochran’s optimism, pointing out that the past four years have shown little to no support for the crypto industry from Harris. They argue that her actions — or lack thereof — speak louder than any vague statements from her campaign team.

Others even more bluntly questioned why Harris hasn’t already done something to support the industry, given her position as Vice President.

The demand for specific, actionable policies remains strong, and until those are presented, many in the crypto industry will continue to view the Democratic candidates statements with skepticism. Harris has made her move, but it will take much more to convince a community that has long felt neglected.

What do experts think?

To gain a deeper understanding of the potential impact of Harris’ emerging stance on crypto, crypto.news spoke with two experts on the subject.

Nick Anthony, a policy analyst from the Cato Institute, offered a candid perspective on Harris’ position. Anthony highlighted the challenges Harris faces, telling crypto.news that while some Democrats have succeeded in maintaining a bipartisan approach to crypto policy, Harris still has much to prove: 

“Individual Democrats have done well to try to keep crypto policy bipartisan. However, if Vice President Harris is going to step out of the shadow of Operation Choke Point 2.0 and Senator Warren’s anti-crypto army, she needs to take an official policy stance herself. Until then, there’s little reason to think the Harris-Walz administration will be any different from the Biden-Harris administration.”

The term “Operation Choke Point 2.0” refers to the perceived recent targeted crackdown on crypto businesses in the U.S., under the guise of general regulatory enforcement — a sentiment believed by many in the industry, who argue that such measures not only stifle innovation, but represent a misuse and manipulation of the law.

Adding to this discussion, Nitin Gaur, co-founder and CTO of Stealth Startup, voiced his concerns over the current administration’s approach to crypto in statement to crypto.news:

“The unjust war on crypto by the incumbent government apparatus and Operation Choke Point 2.0 is a shotgun approach to stymie the growth of an industry. It is not about crypto as a currency, but a new technology that aims to solve the trust system and coordination technology to move the transaction speed forward.”

He stressed the need for meaningful policies that should consider the intersections of technology, including AI, blockchain, and quantum computing, which have the potential to transform not just the financial sector but other fields as well. 

Gaur warned that “the current administration has ignored all adjacencies and focused on the ‘currency’ part of the equation — it needs to take time and craft meaningful policies.”

Both experts agree that the path forward requires more than just broad statements. As it stands, the crypto world remains cautious, waiting to see whether Harris can truly differentiate herself and her policies from those of the current administration.