Digital asset firms have vocally supported the candidacy of former President Donald Trump. The Biden Administration has long been hostile towards crypto, with SEC Chairman Gary Gensler leading the charge of undermining this sector of Fintech, choosing to regulate crypto by enforcement. This means that crypto firms have struggled to grow services without updated rules. Recognizing their vulnerability to this sector of the electorate, the Kamala Harris campaign is looking to “reset” policy towards crypto, according to a report by the FT.
According to the article, the Harris campaign has contacted leadership at Coinbase (NASDAQ:COIN), Circle, and Ripple. Two of these firms have garnered the ire of the SEC as the Commission has filed enforcement actions against these operations.
The report states that crypto firms may provide a significant financial boost to the Trump campaign. If the Harris team pursues a “smart regulatory framework” for crypto, this may counter the rise in support for Trump and temper enthusiasm for the former President.
At the same time, it could be a situation of too little too late as multiple high-profile VCs have already endorsed the candidacy of Trump, and some noted digital asset entrepreneurs have contributed large sums to the Trump campaign. Trump recently spoke at a Bitcoin conference, vocalizing his support of crypto following the release of the GOP agenda, which also highlighted its backing of innovation in digital assets.
The Trump policy on crypto states:
Republicans will “end Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of a Central Bank Digital Currency [CBDC]. We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control.”
The Biden administration has damaged digital asset growth in the burgeoning realm of regulated crypto services. Meanwhile, other jurisdictions, like the UK and the EU, have sought a path of fueling innovation while seeking sufficient consumer protection guardrails. The change in posture by the Harris team could improve prospects for the Vice President in a campaign that is expected to be very close as the Presidential election nears. It could also mean the ouster of Chairman Gensler at the SEC and perhaps other officials who have taken an irrational approach to digital asset opportunities – if Harris wins the race.
