Regulation
What is Trump and Harris’ position on cryptocurrency?
Former President Donald Trump told the audience during a cryptocurrency conference in Nashville, Tennessee, this weekend that he wants to make the United States the “crypto capital of the world.”
Those remarks propelled digital currency to the forefront of a presidential campaign. campaign in which the two leading candidates seek to create contrasts on hot-button issues. The political attention comes at a time when Bitcointhe most popular cryptocurrency, which has increased in value by 60% this year.
Assetwho opposed crypto as president, has recently launched a whirlwind campaign in favor of digital assets. In contrast, the likely Democratic nominee Kamala Harris has remained silent on the issue since President Biden ended his re-election campaign more than a week ago and endorsed the vice president in his place.
“This is a really timely issue,” Aaron Klein, a senior fellow in economic studies at the Brookings Institute, told ABC News, pointing to key groups that disproportionately trade in cryptocurrencies, such as young voters.
In response to ABC News’ request for comment, the Trump campaign touted the candidate’s support for crypto and the broader tech industry.
“As the Bitcoin conference demonstrated, President Trump wants our country to return to the global leadership in technology, innovation and manufacturing. That includes crypto and other sectors,” Brian Hughes, a senior adviser, told ABC News in a statement. “Crypto innovators and other tech players are under attack by Kamala Harris and Democrats who have placed unnecessary obstacles and burdens in the path of our country’s next generation of industry leaders.”
The Biden campaign did not immediately respond to a request for comment from ABC News on the matter.
Here’s what you need to know about Trump and Harris’ stance on cryptocurrency:
What is former President Donald Trump’s stance on cryptocurrency?
During his time in office, Trump has been a vocal critic of cryptocurrencies. In 2019, he derided digital assets in a job on X as being “highly volatile and vacuum-based.”
“Unregulated crypto assets can facilitate illegal behavior, including drug trafficking,” Trump added.
But lately, Trump has expressed his full support for cryptocurrencies. Speaking at the annual Bitcoin conference on Saturday, Trump promised to ease regulations on cryptocurrencies and establish the federal government’s first national strategic reserve of bitcoin.
Trump also said he would replace Securities and Exchange Commission Chairman Gary Gensler, who many crypto proponents dislike because of his heavy-handed approach to crypto regulation.
“Trump seems to have changed his mind and is going all-in on crypto,” Eswar Prasad, a Cornell University professor who studies digital assets, told ABC News.
In recent weeks, Trump has received support from some Silicon Valley figures who support cryptocurrencies, including Tesla CEO Elon Musk, a vocal proponent of cryptocurrencies. Other Trump supporters include Cameron and Tyler Winklevoss, billionaire cryptocurrency entrepreneurs who rose to prominence in the early 2000s after suing Facebook CEO Mark Zuckerberg.
In a job On Monday, Cameron Winklevoss said on X: “We’re going to make America and Bitcoin greater than ever before.”
Vice President Kamala Harris delivers remarks during a campaign event in Pittsfield, Massachusetts, on July 27, 2024. Stephanie Scarbrough/AP
Prasad said Trump’s reversal on crypto aligns with his efforts to attract Silicon Valley donors and signal a deregulatory approach to businesses.
“He seems to view the cryptocurrency industry as a source of funding for this campaign and also as being in line with his anti-government message,” Prasad said.
What is Vice President Kamala Harris’ position on cryptocurrency?
It remains difficult to discern exactly where Harris stands on crypto, experts told ABC News.
The Biden administration has been widely seen as tough on cryptocurrencies, they noted, citing the federal prosecution of the founder of FTX Sam Bankman-Fried and Gensler’s cryptocurrency regulations. However, experts told ABC News it was unclear to what extent Harris intended to align with Biden on this issue.
Democrats are divided on cryptocurrency policy, said Klein of the Brookings Institute. Progressive Sen. Elizabeth Warren, a Massachusetts Democrat, for example, has been a vocal critic of cryptocurrencies, while tech entrepreneur and Harris supporter Mark Cuban has sought to take a friendlier stance on digital assets, Klein noted.
“The Democratic Party is divided,” Klein said.
Harris may ultimately seek to soften the Biden administration’s stance on cryptocurrency, experts said. The Harris campaign has reached out to major cryptocurrency companies in an effort to “reset” the industry’s relationship with the Democratic Party, the spokesperson said. The Financial Times reported on Saturday.
“I suspect that Harris’ campaign will have some level of strategic ambiguity between the Biden administration’s line and what the cryptocurrency industry wants,” Klein told ABC News.