Kamala Harris Poised to Shape U.S. Crypto Policy Ahead of 2024 Election

Jimmy Aki
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As the 2024 presidential race intensifies, Kamala Harris, the Democratic candidate, faces growing scrutiny over her stance on cryptocurrency. There are questions about whether she will continue the Biden administration’s stringent approach to crypto regulation or pivot towards a more favorable stance.

Harris’ Crypto Path: A Key Issue in the 2024 Race

During an interview on CNBC, former Republican presidential candidate Vivek Ramaswamy addressed these concerns, suggesting that Harris might shift her rhetoric to appeal to crypto voters.

Ramaswamy emphasized that Harris’ sincerity in supporting crypto should be judged by her specific policy positions on critical issues like the self-custody of digital assets and the leadership of the Securities and Exchange Commission (SEC). He challenged her to clarify her stance, saying,

“Go into detail, say what you believe about self-custody of assets. Say what you believe about whether you think Gary Gensler should continue as the leader of the SEC”.

Harris’ potential stance on cryptocurrency is especially significant as she vies for the U.S. presidency against former President Donald Trump, who has been vocal about his pro-crypto views.

Trump has proposed using Bitcoin to pay off the U.S. national debt and establishing a Bitcoin strategic reserve, positioning himself as a strong advocate for digital assets.

In contrast, Harris’ current association with Biden’s regulatory approach could be a deciding factor for voters in the crypto community, making her upcoming policy announcements crucial.

Speculation about Harris’ approach to cryptocurrency has gained momentum following her appointment of two economic advisors to help shape her policy speech in mid-August.

This move has raised concerns that Harris may align with President Joe Biden’s regulatory crackdown on the industry.

Notably, Biden’s administration crackdown on the crypto industry started fully following the FTX collapse in 2022, as the White House issued its first fact sheet related to crypto. This resulted in the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) clamping down on crypto firms.

In May 2024, President Biden vetoed the legislative resolution aimed at overturning the SEC’s Staff Accounting Bulletin 121 (SAB 121). The measure would have ended the SEC’s special rules for custodians of crypto assets.

This veto by Biden came after the White House stood against the Financial Innovation and Technology for the 21st Century Act (FIT21), due to customer protection concerns. This is a structured bill on the crypto market that was passed in the U.S. House of Representatives.

The Road Ahead for Harris and U.S. Crypto Regulation

As Kamala Harris prepares for her mid-August economic policy speech, her position on cryptocurrency will be closely watched by both her supporters and critics.

The decisions she makes could significantly impact the future of crypto regulation in the U.S. potentially marking a departure from Biden’s policies or signaling a continuation of the current regulatory environment.

Harris’s position on digital assets will not only influence her campaign but also shape the broader discourse around cryptocurrency in the U.S. With the 2024 election on the horizon, her approach to crypto could become a defining issue, determining how the Democratic Party engages with the evolving world of digital finance.

Venture capital firm Paradigm, recently released a poll conducted among 804 Democrats which shows that 27% of the respondents said they were “somewhat likely” or “very likely” to purchase crypto in the next 12 months. The poll also shows that 18% of Democrats have bought crypto.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.