Kamala Harris finally mentions crypto, but sceptics remain unconvinced

US Presidential hopeful Kamala Harris has finally broken her silence on cryptocurrencies and has vowed to promote investments in the sector and other emerging technologies.

A report from Bloomberg, citing Harris’s speech at a September 22 fundraiser in Manhattan, said the Vice President aims to “cut needless bureaucracy” and focus on developing “industries of the future” with the digital assets sector as one of the potential beneficiaries.

Harris emphasized creating a stable regulatory environment with “consistent and transparent rules of the road,” aiming to encourage investments in “innovative technologies like AI and digital assets,” while also focusing on consumer protection.

This instance marked the first time Harris mentioned cryptocurrencies during a public appearance, as cryptocurrencies have become a key issue in the 2024 presidential race.

Harris’s comment on crypto: mixed reactions

Some crypto proponents view this as a change from the current administration’s perceived anti-crypto stance.

Alexander Grieve, Vice President of Government Affairs at VC firm Paradigm, called the remarks “encouraging” but added that Harris’ approach would be different from that of Donald Trump, who has been promoting himself as America’s crypto president.

Pro-crypto Congressman Wiley Nickel, also a part of the Crypto4Harris campaign, a Democratic initiative that seeks to engage with the crypto sector, described it as a “big deal for crypto and blockchain technology.”

Nickel said this shift aligns Harris with pro-innovation Democrats, like those backing the Future of Innovation and Technology in the 21st Century initiative, advocating for policies that foster digital innovation in the US rather than stifle it.

However, some market observers remained sceptical questioning her commitment to the sector.

Critics argue that, as US Vice President, Harris had ample time to influence crypto policy but remained largely silent when the industry was vocal about its need for regulatory clarity.

Harris’s comment on crypto: politically motivated?

Some see her recent comments as politically motivated rather than a genuine policy shift, particularly given that she had previously supported stances seen as unfavorable to the crypto space. 

According to venture capitalist Nic Carter, the recent remarks “means less than nothing.”

Meanwhile, crypto venture firm Variant’s legal chief Jake Chervinsky pointed out the language used—particularly “protecting our consumers and investors”—leaves much to interpretation.

This is progress and progress is good…

…but “while protecting our consumers and investors” could mean a lot of things.

The anti-crypto army uses “consumer protection” as a smoke screen to conceal their attempts to destroy our industry.

I, for one, want to see policy details.

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Chervinsky pointed out that “the anti-crypto army” often used this phrase as a pretext to justify restrictive measures. 

One example is the Securities and Exchange Commission’s Staff Accounting Bulletin (SAB) 121, a controversial rule requiring companies holding crypto assets for customers to list those assets as liabilities on their balance sheets.

While it was promoted as a consumer protection measure, it imposed significant burdens on institutions dealing with digital assets, discouraging them from providing crypto services due to increased regulatory complexity and financial liabilities. 

The Biden-Harris administration supported this regulatory approach, with President Biden vetoing a bipartisan resolution that sought to repeal it.

Harris’ comments follow statements from her campaign advisor Brian Nelson last month, indicating that the Vice President would support crypto policies if she secures a victory.

However, Nelson highlighted the need for clear regulations while pointing to the fallout from events like the collapse of FTX in late 2022. 

The 2024 US election is poised to shape the future of cryptocurrency regulation in the US.

The election’s outcome could determine whether the industry faces more restrictive measures or a clearer, supportive regulatory framework.

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