Kamala Harris must outline crypto strategy to counter Trump’s pro-Bitcoin influence, think tank says
Vice
President
Kamala
Harris
faces
increasing
pressure
to
clarify
her
stance
on
crypto
as
the
2024
election
approaches
or
risk
“ceding”
the
industry’s
support
to
former
President
Donald
Trump,
according
to
a
new
think
tank
report.
The
report,
published
by
the
Official
Monetary
and
Financial
Institutions
Forum
(OMFIF),
emphasized
that
Harris
must
engage
with
the
crypto
community
or
risk
losing
significant
ground
to
the
Republican
party.
The
report
comes
amid
heightened
calls
for
Harris
to
pivot
from
the
current
administration’s
cautious,
often
hostile,
stance
toward
digital
assets.
For
her
part,
Harris
has
reportedly
increased
efforts
to
engage
with
the
industry
in
recent
days.
Fox
News’
Eleanor
Terret
revealed
on
Aug.
2
that
Congressman
Ro
Khanna
is
set
to
host
a
significant
meeting
on
Aug.
5,
gathering
leaders
from
the
crypto
industry,
Democratic
politicians,
and
representatives
from
the
Harris
campaign
to
establish
a
“fresh
start”
with
the
sector.
However,
many
believe
that
these
efforts
may
come
too
late
to
sway
voters,
while
others
are
skeptical
of
Harris’
rumored
pivot
and
believe
the
Democrats
need
to
take
decisive
action
rather
than
holding
discussions
to
shift
the
public
perception.
Trump’s
overt
support
The
Republican
party,
under
the
influence
of
Trump,
has
actively
courted
the
crypto
sector
and
adopted
an
overtly
pro-crypto
stance.
Trump’s
promises
of
favorable
regulations,
including
the
dismissal
of
SEC
Chair
Gary
Gensler
and
the
creation
of
a
US
Bitcoin
reserve,
have
resonated
with
the
community.
By
accepting
crypto
donations
and
championing
the
industry,
Trump
has
positioned
himself
as
a
leading
advocate,
appealing
to
crypto
enthusiasts
who
feel
neglected
by
current
policies.
Meanwhile,
Republican
lawmakers
are
pushing
for
government
adoption
of
Bitcoin
and
self-custody
rights.
In
contrast,
the
Democratic
party
has
struggled
to
win
over
the
crypto
community.
The
US
has
lagged
in
providing
clear
regulatory
frameworks
for
crypto
businesses,
unlike
regions
such
as
the
EU
and
Singapore.
Legislative
efforts
like
the
Financial
Innovation
and
Technology
for
the
21st
Century
Act
(FIT21)
have
faced
opposition
from
key
Democrats,
including
Senator
Elizabeth
Warren.
Meanwhile,
the
SEC’s
enforcement
actions,
particularly
its
contentious
lawsuits,
have
added
to
the
regulatory
uncertainty,
while
President
Joe
Biden’s
veto
of
a
bill
aimed
at
reversing
SEC
guidance
that
complicates
banks’
ability
to
hold
digital
assets
further
cemented
the
administration’s
negative
stance.
Reshaping
the
narrative
According
to
the
OMFIF,
Harris
has
the
opportunity
to
reshape
the
narrative
by
supporting
existing
legislative
efforts
and
promoting
regulatory
clarity. The
think
tank
said
that
advocating
for
the
FIT21
bills
and
the
Stablecoins
Act
at
the
upcoming
Democratic
National
Convention
could
signal
a
significant
shift.
It
further
suggested
that
she
could
attract
support
and
donations
from
the
sector
by
adopting
a
more
conciliatory
approach
toward
the
crypto
industry. The
OMFIF
believes
that
such
moves
could
potentially
sway
voters
in
key
battleground
states.
According
to
the
think
tank,
the
crypto
industry’s
influence
on
the
political
landscape
is
growing,
and
engaging
with
crypto
policy
offers
a
chance
to
attract
a
new
voter
base
and
address
the
economic
potential
of
the
industry. It
further
stated
that
proper
regulation,
balancing
risks
and
opportunities,
is
crucial
for
the
U.S.
economy
and
should
transcend
partisan
politics.
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