As a Democratic presidential candidate, Vice President Kamala Harris could tighten the Biden administration’s strict cryptocurrency regulations, according to recent reports and expert analysis.
Kamala Harris’ advisor choices signal potential cryptocurrency crackdown
Harris has reportedly hired Brian Deese and Bharat Ramamurti, former economic advisers to the Biden administration who are known for opposing the Clarity for Payment Stablecoins Act of 2023 because they believe it is too lenient for issuers. The crypto community has raised concerns about this choice of advisers.
Alex Thorn, head of research at Galaxy, said: “Her choice of advisers suggests she will maintain Biden’s hostile stance toward cryptocurrencies.”
by the way, bharat later left the white house and was replaced on the NEC by jon donenberg, yet ANOTHER former warren aide. based on harris’ advisor choices, i won’t be surprised to hear shortly that he TOO will advise the harris/walz campaign. SAD! pic.twitter.com/6T2WH1RSVY
— Alex Thorn (@intangiblecoins) August 13, 2024
Deese and Ramamurti’s background is significant, especially considering recent events in the U.S. banking sector. In March 2023, crypto-friendly banks Silicon Valley Bank, Silvergate Bank, and Signature Bank were hit by sudden collapses or forced closures.
This series of events was dubbed “Operation Chokepoint 2.0” by some industry observers, who saw it as a coordinated effort to distance the banking sector from cryptocurrency businesses.
Thorn suspects that these advisers played a major role in what some perceive as an “anti-crypto crusade,” including the events surrounding the bank closures.
Ramamurti, known as a vocal critic of the cryptocurrency industry, may signal a hardening of that stance through his role in Harris’ campaign.
However, the Vice President will present her economic policy agenda in a speech in mid-August that could provide further insight into her approach to cryptocurrency regulation.
Skepticism within the crypto community and impact of the election on Harris’ crypto stance
Recent events have fueled skepticism about Harris’ intentions toward the crypto industry. The Federal Reserve’s enforcement actions against crypto-friendly Customers Bank on August 9 have sparked debate about the administration’s true stance.
Gemini co-founder Tyler Winklevoss commented on the situation, noting that “Operation Choke Point 2.0 is in full swing” and expressed doubts about Harris’ alleged efforts to repair relations with the cryptocurrency industry.
Cardano founder Charles Hoskinson echoed these concerns, warning that a vote with Harris could harm the U.S. crypto industry, suggesting a continuation of the current administration’s “war on cryptocurrency.”
With less than 90 days to go until the election, crypto supporters who could vote for Harris are under pressure to make their case. Recent polls put Harris in a close race with Republican candidate Donald Trump in battleground states.
Forecasting platform Polymarket has classified the race between Harris and Trump as a “tossup,” reflecting the uncertainty about the election outcome and its potential impact on crypto policy.
Harris has not yet made her stance on cryptocurrencies clear, but more details are expected in the coming weeks.
The planned meeting with Trump in a televised debate on September 10 on ABC and possible further debates on September 4 and 25 could give Harris an opportunity to clarify her position on crypto regulation.
