Harris May Continue Biden Administration’s Crypto Regulatory Stance

Kamala Harris aims to maintain the Biden administration's strict stance on cryptocurrency regulation.

Harris is reportedly working with two former economic advisers to the Biden administration, Brian Deese and Bharat Ramamurti, who strongly opposed the previous Payments Stablecoin Act of 2023, arguing that it was too lenient towards issuers.

Alex Thorn, head of research at Galaxy, wrote in an Aug. 13 post on X that Harris’s choice of economic adviser could indicate that she intends to continue the Biden administration’s hostile regulatory approach toward cryptocurrencies:

"New evidence suggests @KamalaHarris will continue her crackdown on crypto. Her advisor choices suggest she will maintain Biden's hostility toward crypto."

Harris is set to unveil plans for her economic policy agenda in a mid-August speech, which could provide investors with more clues about her attitude toward cryptocurrency regulation.

Are Deese and Ramamurti involved in “Operation Chokepoint 2.0”?

In March 2023, Silicon Valley Bank suddenly collapsed and Silvergate Bank voluntarily liquidated, which hit the U.S. banking system hard. Signature Bank was also forced to close its business by New York regulators on March 12, two days after Silvergate Bank was liquidated.

The sudden collapse of the three crypto-friendly U.S. banks was dubbed “Operation Chokepoint 2.0” by crypto venture capitalist Nic Carter, who described it as a “concerted effort” to de-bank the cryptocurrency industry.

Source: Nic Carter

Galaxy’s Thorn wrote that Deese and Ramamurti’s alleged involvement in the operation is a worrying sign for future cryptocurrency regulation, writing:

“Deese and Ramamurti are two of the main architects of the Biden administration’s anti-cryptocurrency campaign, including chokepoint 2.0.”

Ramamurti is “the White House’s top cryptocurrency critic”

Fortune, a well-known American business magazine, previously called Ramamurti the "top cryptocurrency critic in the White House." He served as deputy director of the White House National Economic Council until October 2023.

This is another reason why Harris’ choice of economic advisors could mean a stronger stance for the cryptocurrency industry, Thorn added:

“Ultimately, people make policy, and if Brian Deese, Bharat Ramamurti, Wally Adeyamo et al. will be leading economic policy in a Harris/Waltz administration, it is unlikely that the administration will soften its stance on cryptocurrencies. ”

The news comes a week after Harris announced Minnesota Governor Tim Waltz as her running mate for the 2024 U.S. presidential election on August 6.