Kamala Harris Could Spell the End of Democrats’ Hard Line on Cryptocurrency, But It’s Too Early to Say for Sure

The cryptocurrency world has long faced fierce criticism from President Biden, whose administration has blocked laws aimed at helping the industry and focused almost entirely on enforcing them. Now, after a historic weekend that saw Biden withdraw his re-election bid, the cryptocurrency industry must now evaluate his running mate, Kamala Harris, who is almost certain to represent the Democrats on the 2024 ticket. Would cryptocurrency face the same situation under Harris — or would it take a softer stance?

Harris hails from the nation’s tech capital, California. While she took social media to task for sexual harassment during her tenure as the state’s attorney general, she has also cultivated She has close relationships with executives like Meta’s Sheryl Sandberg, earning her a reputation as a pro-business politician. Many in the crypto world are hoping she’ll bring that same perspective to the campaign trail, and potentially to the White House.

“Given the growing bipartisanship we are seeing in Congress, I am hopeful that a Harris presidency will continue on this path,” Adam Minehardt, head of global government relations at the Stellar Development Foundation and former chief of staff to Nydia Velázquez (D-N.Y.), said in a text message to Fortune.

Changing the sea

The Biden administration may not have started with an anti-crypto streak, but the collapse of FTX and the fallout from Sam Bankman-Fried’s political donations have set off a chain reaction of hostility. congressional hearings In late 2022 and early 2023, the risks of blockchain platforms were highlighted to consumers and government agencies led by Biden appointees, such as the chairman of the Securities and Exchange Commission. Gary Gensler has filed lawsuits against some of the biggest players in the industry.

Despite the frosty atmosphere, Democrats and centrist Republicans advanced several landmark bills, including Regulation of market structure from the House Financial Services Committee, as well as a bill to repeal a SEC’s controversial bulletin which has received broad bipartisan support. Meanwhile, former President Trump has embraced the blockchain industry, including by attending the Bitcoin conference later this week. His vice presidential pick, Sen. J.D. Vance (R-Ohio), has also carved out a niche for himself as a crypto advocate and personally possesses Bitcoin.

Harris may have become a California senator and then vice president as a pro-tech politician, but she has yet to take a public position on blockchain regulation. One crypto lobbyist, who spoke to Fortune on the condition of anonymity to speak candidly about the changing political dynamics, described the situation as “up in the air.” He said all eyes will be on Harris’s VP pick, as well as the advisers she surrounds herself with.

When Biden became president, many of his economic advisors Harris comes from a progressive background and has worked with Sen. Elizabeth Warren (D-Mass.), a fierce critic of cryptocurrencies. Harris doesn’t have the same connections. A crypto policy adviser and former Biden administration official, who spoke to Fortune on the condition of anonymity, said Harris has been largely shut out of economic policy. “She doesn’t have the same deal that Biden and Warren have, or even the same proximity to Warren’s staff,” they said. Still, Warren approved Harris withdrew her candidacy shortly after Biden withdrew his nomination on Sunday.

If Harris is elected, the question will be whether she will seek to appoint a new SEC chair, with Gensler’s term set to end in 2026, though she could push for a fresh start. The cryptocurrency lobbyist said that would be the “safest path” to keeping the Biden administration’s infrastructure in place.

Although Harris didn’t even secure the Democratic nomination, a blockchain trade group – the Digital Chamber – took the opportunity to publish a letter calling on him to support cryptocurrency legislation. “We believe this technology is nonpartisan and that the Democratic Party should also champion these innovations,” they wrote.

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