Vice President Kamala Harris’s presidential campaign advisors have reached out to influential members of the cryptocurrency space.
The outreach aims to build relationships that could shape future regulatory frameworks, the Financial Times reported, citing sources familiar with the matter.
Notable industry participants like stablecoin provider Circle, blockchain payments startup Ripple Labs, and cryptocurrency exchange Coinbase have participated in recent outreach initiatives.
The action suggests that the Democratic Party’s stance on the tech and cryptocurrency industries, which have historically been seen as more liberal but have recently been strained by the regulatory stance of the Biden administration, may change.
Democratic Party Supports “Responsible Business”
The story stated that an insider disclosed that the goal of Harris’s campaign is to demonstrate that the Democratic Party is in favor of “pro-business, responsible business” practices.
Harris’s rise to prominence as the Democratic nominee for president offers a chance to repair ties with the tech sector, which has come under growing criticism from the current government.
Brad Garlinghouse, the CEO of Ripple, urged Harris to set herself apart from critics such as Rep. Brad Sherman (D-Calif.), who has been a vocal opponent of cryptocurrencies, in a recent post on X.
He underlined that Republicans gain traction by encouraging innovation in the US, while Democrats run the risk of losing support from voters by opposing cryptocurrency.
Jumping to conclusions and assumptions about candidates purely based on political affiliation without any policy proposals is holding the crypto industry back (similar to how tribalism has for years).
— Brad Garlinghouse (@bgarlinghouse) July 24, 2024
VP Harris is no stranger to Silicon Valley & has an incredible opportunity to… https://t.co/2kmKDZZXJe
Garlinghouse added that Harris has an opportunity to change the perception of cryptocurrency regulation because he is acquainted with Silicon Valley’s workings.
He voiced cautious optimism but cautioned that, given the controversy surrounding SEC Chairman Gary Gensler, taking a hardline position akin to Senator Elizabeth Warren’s could be politically detrimental.
Even Democratic allies like billionaire Mark Cuban, who recently proposed that President Biden replace Gensler, have voiced criticism of the congressman.
Prominent cryptocurrency supporter Cuban verified that advisors for Harris had contacted him on several occasions with questions regarding cryptocurrencies.
This, he saw as a promising indication of Harris’s campaign’s possible openness to the industry.
Donald Trump, the former president, has also been interacting with the cryptocurrency community and has changed his earlier skepticism.
7 U.S. States Challenge SEC’s Crypto Regulations
As reported, a coalition of seven U.S. states has come together to challenge the SEC’s regulation of cryptocurrency.
The states, led by Attorney General Brenna Bird of Iowa, have filed an amicus brief in which they contend that the SEC’s attempt to regulate cryptocurrencies is an overreach of its authority and a “power grab” that would hinder innovation and the cryptocurrency industry.
Arkansas, Indiana, Kansas, Montana, and Nebraska are members of the coalition; Oklahoma is the newest member.
When it comes to regulating cryptocurrencies, SEC Commissioner Hester Peirce stated earlier this year that the organization is presently in a “enforcement-only mode.”
Known as one of the five commissioners on the SEC with a strong stance on cryptocurrency, Peirce acknowledged the strain industry players face in their ongoing efforts to stay out of legal hotspots.
“If we had clearer rules, you could focus on building,” she said.
Last week, the SEC closed its three-year investigation into Hiro Systems.
The agency’s conclusion of the investigation comes just a day after it closed a separate case involving stablecoin issuer Paxos, marking another instance where the regulatory body has opted not to pursue enforcement actions against crypto entities.