What does Harris’ presidential nomination mean for the crypto industry?

Vice President Kamala Harris is now the Democratic presidential candidate after President Joe Biden abruptly announced his withdrawal from the race. With her emergence as the party’s nominee, questions have arisen about how a Harris administration would differ from a Biden administration’s approach to cryptocurrencies.

Change of atmosphere

Increased Fundraising

The shift in tone has certainly come after President Joe Biden announced he would not run for president, prompting Vice President Kamala Harris to become the Democratic presidential nominee. ActBlue, a fundraising service focused on Democrats, reported it had received $160 million since Biden announced his withdrawal, while Harris’ campaign said it had received $81 million as of Monday afternoon, according to open-source tracking data.

Why Harris's Presumptive Candidate Is Important for the Crypto Industry

The real question for the cryptocurrency industry is whether and how much Harris has diverged from Biden, and how she differs from former President and Republican nominee Donald Trump. Harris has been the presumptive nominee for less than a day, and she’s only been in charge of the campaign for about two days, so it’s hard to tell at this point. It’s clear that some kind of reset is on the cards — entrepreneur Mark Cuban told Politico that Harris’ campaign has expressed interest in cryptocurrency (among other issues), and Bitcoin Magazine’s David Bailey said the campaign is considering a speech at BTC Nashville later this week.

Harris's position

While it’s difficult to assess how presidential candidate Kamala Harris would approach cryptocurrencies, the mere fact that she is now the party’s new standard-bearer suggests that the crypto industry could take a new approach to the 2024 elections.

“You play the cards you’re dealt, and now we have a new set of cards,” said Sheila Warren, chief executive of the Crypto Council for Innovation, an industry interest group.

It’s unlikely that Harris will publicly support cryptocurrency right away , but many people told me that her taking over the campaign would be a reset.

One congressional staffer noted that the new campaign offers “an opportunity to reset,” noting that industry groups have written open letters to the campaign and Democrats on cryptocurrency.

And, in their view, the new campaign might be more receptive to those issues.

Both the staffer and Warren noted that Harris is from California, meaning she may already be more comfortable with technology and related issues.

“She’s certainly no stranger to the importance of technology, which is critical to her state," Warren said. "She’s someone who’s always been willing to engage in thoughtful debate.”

Harris's choice of vice presidential candidate will also be telling. Warren said many of the current candidates -- including Pennsylvania Gov. Josh Shapiro, North Carolina Gov. Roy Cooper, Arizona Sen. Mark Kelly or Transportation Secretary Pete Buttigieg -- "are mostly very pro-business." Harris picking any of those people would be a meaningful move.

This is not a one-sided conversation. Industry groups and individuals have drafted an open letter to the Democratic Party and the Harris campaign, asking for less “hostility” toward the crypto industry.

“We urge you to sit down with leaders in the digital asset and blockchain industries to discuss policies that support and foster this technology. An open dialogue with industry experts will provide valuable insights and help shape policies that encourage growth while ensuring consumer protection and financial stability,” a letter from the Chamber of Digital Commerce reads.