Has Kamala Harris gone full crypto?
Harris, the Democratic nominee for president, just name-dropped crypto for the second time this week.
At a campaign event In Pennsylvania on Wednesday, the vice president said the US should become “dominant” in blockchain, as well as other technologies such as artificial intelligence and quantum computing.
The shout-out is striking given the crackdown the Biden Administration has pursued in the industry over the last three years.
Not convinced
Indeed, one of the main reasons why Coinbase, Kraken, the Winklevoss twins and other crypto mavens have raised millions for pro-crypto candidates is to rebuff the efforts of Gary Gensler, the chair of the US Securities and Exchange Commission, and other Biden appointees.
Even though Harris is suddenly making nice with crypto, industry insiders aren’t convinced she will be any better for the industry.
“Hollow words,” Jon Charbonneau, co-founder of crypto investment firm DBA, said on X. “Same stuff Biden said in 2022.”
Charbonneau was referring to the Biden administration’s executive order on ensuring the responsible development of digital assets, which promised to “support technological advances that promote responsible development and use of digital assets.”
‘It’s OK to vote for Kamala, but please don’t pretend she’s pro-crypto.’
Hasu
Many in the industry say the commitments contained in the executive order haven’t been followed.
They cite a slew of crypto litigation from the SEC as evidence that the Biden Administration is hostile toward the industry.
The agency’s data shows it has brought some 158 cases against firms and individuals involving crypto.
Over half of these were levied under Gensler, and around 50 since Biden’s 2022 executive order.
Then there is Elizabeth Warren, the Democratic senator from Massachusetts.
As a longtime advocate for consumer finance protection, she has lumped crypto in with credit card fraud, usury, and other types of fiscal ripoffs. Last year, she signalled the building of an “anti-crypto army” as part of her re-election campaign in 2024.
Fundraiser
Other Democratic politicians, such as Brad Sherman, a California congressman, have also voted against pro-crypto legislation.
Harris abruptly shifted course at a Sunday fundraiser in New York. She said her administration would “partner together to invest in America’s competitiveness,” pointing to artificial intelligence, quantum computing, and crypto as key areas of focus.
While Uniswap CEO Hayden Adams praised the comments, many in the industry remain unconvinced.
“It’s OK to vote for Kamala, but please don’t pretend she’s pro-crypto,” Hasu, the pseudonymous strategy lead at MEV firm Flashbots and advisor to top DeFi protocol Lido, said. “She’s about as anti-crypto as you can be in a democratic republic.”
Pierre Rochard, vice president of research at Bitcoin mining firm Riot Platforms, criticised Harris’ use of the word “blockchain” over the more commonly used “crypto.”
Using the word blockchain in this context, Rochard argues, could refer to a central bank digital currency and not cryptocurrencies like Bitcoin.
No CBDCs
Many in the industry are wary of efforts to introduce a central bank digital currency — or CBDC. Detractors say a CBDC, if implemented, would reduce privacy, create a single point of failure, and enable financial discrimination.
It’s an idea Republican nominee Donald Trump has picked up on, even before his recent pro-crypto posturing. In a July speech, the former president said he would ban the implementation of a CBDC if re-elected.
But there are other reasons to believe Harris will be more crypto-friendly than the current administration.
She dispatched aides, including senior campaign adviser Brian Nelson, to court crypto investors and their Democratic allies in Congress.
Senior Democratic representative Maxine Waters said in a Thursday interview with Politico that “crypto is the future,” that she’s committed to a stablecoin bill, and that she wants to “start from scratch” on other crypto legislation.
Cuban weighs in
Then there’s billionaire entrepreneur Mark Cuban, a vocal Harris supporter and long-time crypto advocate.
Harris has brought on Cuban, as well as former Trump aide Anthony Scaramucci, to informally advise her campaign on crypto, Semafor reported.
Scaramucci, a crypto investor, runs the hedge fund SkyBridge Capital and hosts the influential Salt conferences for well-heeled investors.
But die hard crypto supporters aren’t easy to turn. And until Harris matches her remarks with action it’s a safe bet they will remain sceptical.
Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.