Kamala Harris wants support to grow crypto industry with consumer guarantees: report

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Vice President Kamala Harris plans to help and support policies that promote growth in the crypto and digital asset industry while maintaining consumer protections, according to a Bloomberg report citing a senior campaign adviser. The position aims to appeal to an emerging crypto sector that is expressing increasing political influence.

Brian Nelson, a senior policy adviser to Harris’ campaign, outlined the vice president’s approach during a panel discussion at the Democratic National Convention.

“She will support policies that ensure emerging technologies and this type of industry can continue to grow,” Nelson said when asked about Harris’ efforts to engage the crypto community.

The comments highlight the campaign’s attempts to strike a balance between embracing innovation and putting in place adequate safeguards for an industry that has experienced high-profile company collapses that have led to massive liquidations and bankruptcies. In early March, Sam Bankman-Fried, the founder and former CEO of FTX, was sentenced to 25 years in prison for his involvement in one of the largest financial fraud cases in American history.

Nelson emphasized the need for “stable rules, rules of the road,” which the sector expressed as crucial to its development.

Reducing red tape and regulatory red tape

Harris herself alluded to this balanced approach in a recent campaign speech in North Carolina, though without explicitly mentioning digital or crypto assets. The vice president pledged to “focus on reducing unnecessary bureaucracy and red tape” while encouraging “innovative technologies (while) protecting consumers and creating a stable business environment with consistent and transparent rules.”

The crypto industry has been dismayed by what it perceives as burdensome regulations from the Biden administration. In response, the sector seeks to expand its political influence, including through substantial campaign donations. This change comes as former President Donald Trump, Harris’ opponent in the upcoming election, is courting crypto enthusiasts with promises of a more crypto-friendly regulatory environment.

Trump has promised to fire SEC Chairman Gary Gensler, whose term runs until 2026, and appoint regulators sympathetic to the crypto industry. He also proposed the creation of a presidential crypto industry advisory council and the development of a stablecoin framework to support the dominance of the US dollar, while blocking the prospect of a US-based CBDC. Such an approach has garnered support from prominent figures such as billionaire investors Cameron and Tyler Winklevoss.

Trump could exacerbate inflation, Harris remains unclear

Rohini Kosoglu, Harris’ former domestic policy adviser, contrasted the vice president’s economic approach with Trump’s, suggesting Harris would provide more security for businesses.

“Businesses are concerned about the chaos of a second Trump administration and what that means for not knowing the rules of the road and making sure they have the opportunity to grow and thrive in an economy,” Kosoglu noted.

Trump has pledged to renew expiring tax breaks and implement broad tariffs on both US allies and adversaries if re-elected. Critics warn that these policies could exacerbate inflation and disrupt global trade, directly impacting crypto markets. Nelson pointed to the uncertainty that Trump’s proposed tariffs create for businesses.

“If I’m a businessman, I don’t know how to operate my business in that environment,” he said.

Harris faces the challenge of quickly setting his political agenda after President Biden’s exit from the race. The economy remains a central issue for voters and a potential liability for Harris. High inflation has fueled dissatisfaction with the administration’s economic management, overshadowing efforts to promote infrastructure investment and domestic production growth.

With less than three months until Election Day, Harris’ team will need to articulate a clear vision for balancing the growth of the crypto industry with consumer protection. Such an approach should differentiate her platform from Trump’s, while also addressing concerns about regulatory overreach expressed by major players in the crypto industry.

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