Harris' Crypto Strategy: Consumer Protection and Innovation
Senior campaign officials are meeting with a select group of crypto experts to discuss policy concerns, but those involved in the discussions do not expect any major breakthroughs ahead of the vote.
The presidential campaign made waves in the crypto world with a brief comment from Vice President Kamala Harris on the industry this weekend, but the industry shouldn’t expect much more in the final weeks before the US election, insiders suggest.
When Harris said her presidency would “promote innovative technologies like AI and digital assets while protecting consumers and investors,” an informed person with knowledge of conversations between the campaign and crypto experts noted that she was deliberately broad.
Discussions on digital asset policy remain at a high level and a detailed stance is unlikely to be developed before voters decide who to vote for, leaving crypto as just one item among the economic innovations Harris will talk about on the campaign trail.
Harris campaign officials, Ripple Labs and Coinbase Inc. He continued to conduct dialogue in a narrow group with industry executives such as, many people are knowledgeable about these discussions. Paul Grewal, Coinbase’s chief legal officer, is one of those who appeared at the campaign meetings.
“There is real progress,” says Grewal. It’s impressive to see how far the Democratic nominee — as well as his Republican rival, former President Donald Trump — has come in just a few weeks.
“All we want are sensible rules and we will follow them,” said Grewal, who led the company’s multifaceted legal battle against the U.S. Securities and Exchange Commission. He called the response from the Harris campaign “encouraging.”
“The Harris administration’s understanding of what both the industry and crypto investors need, if that happens, is maturing and deepening,” Grewal said, though he noted it could be a while before actual policy choices become visible.
“Some things just have to take a little longer than we all want,” he said.
Grewal suggested that crypto discussions occurred frequently with the Harris and Trump campaigns.
Ripple declined to comment on the talks, but others at the table emphasized that the Harris campaign only started two months ago and that any statement must be free from realism.
“These campaigns do not have the luxury of developing fully thought-out approaches to regulating crypto,” Grewal said. “It’s impossible to expect this to be practical or realistic.”
Former Trump aide Anthony Scaramucci, founder and managing partner of SkyBridge Capital, is among those working on crypto policy with the Harris campaign, he said at a recent event.
Harris’ campaign did not immediately respond to a request for comment on its crypto policy strategy.
Harris’s supportive tone when she first mentioned the technology mirrors President Joe Biden’s previous stance on crypto. Biden’s famous executive order suggested that the White House would support technological advances and US competitiveness, while emphasizing that crypto developments should not harm consumers.
But that March 2022 order was before the collapse of FTX and the failure of many other high-profile digital asset businesses, and U.S. financial regulators moved to partially decouple the banking system from crypto and launch dozens of legal actions.
The Vice President’s campaign said his statement over the weekend was intended to show that crypto enthusiasts are hoping for a reset in the United States.
Political calculations may not allow for much more since Harris doesn’t yet know who will run the chambers of Congress if she wins, giving her room to strategize on legislation.
Trump’s rhetoric has now become completely supportive of crypto. One of his family’s latest business ventures is in decentralized finance (DeFi), and the Trumps’ World Liberty Financial project has drawn some criticism among crypto advocates.
He has been backing the crypto business throughout the campaign and promoting digital asset policies in a likely second Trump administration, which he said would enable the US to become the “world capital for crypto”.
Paid surveys for the industry show that some voter preferences may be influential when considering crypto.
“I think the crypto voter voice is heard loud and clear in this race, so campaigns are leaning into the voices that will matter the most and vote in the largest numbers in November,” Grewal added.