Advisors to Vice President Kamala Harris’s presidential campaign have reached out to key figures in the cryptocurrency industry, aiming to establish relationships that could shape future regulatory frameworks. Recent outreach efforts have included prominent players such as Coinbase, Circle, and Ripple Labs. This move signals a potential shift in the Democratic Party’s approach to the tech and crypto sectors, traditionally seen as more liberal but recently strained by the Biden administration’s regulatory stance. The campaign intends to convey a message of supporting “pro-business, responsible business” practices, indicating a willingness to mend relations with the tech industry.
Ripple CEO Brad Garlinghouse has urged Vice President Harris to distance herself from critics like Rep. Brad Sherman, who has been vocal against cryptocurrency. Garlinghouse believes that Democrats risk losing voter support by opposing crypto while Republicans gain traction by supporting innovation within the U.S. Harris, who is familiar with Silicon Valley’s dynamics, has an opportunity to reset the narrative on crypto regulation. However, Garlinghouse warns against adopting a hardline stance similar to Senator Elizabeth Warren’s, which could be politically damaging, particularly given the controversy surrounding SEC Chairman Gary Gensler. Billionaire Mark Cuban, a crypto advocate, confirmed that Harris’s advisors had approached him, indicating a potential openness to the sector within the campaign.
A coalition of seven U.S. states, led by Iowa Attorney General Brenna Bird, has challenged the SEC’s regulation of cryptocurrency. The states argue that the SEC’s attempts to regulate crypto constitute a “power grab” that could stifle innovation, harm the industry, and exceed the agency’s authority. This coalition includes Arkansas, Indiana, Kansas, Montana, and Nebraska, with Oklahoma being the latest to join. SEC Commissioner Hester Peirce, known for her crypto-friendly stance, admitted that the agency is currently in an “enforcement-only mode” in regulating cryptocurrencies. She acknowledged the burden placed on industry participants who are constantly concerned about avoiding legal disputes, emphasizing the need for clearer rules to allow them to focus on building.
The relationship between the Democratic Party and the cryptocurrency industry is evolving, with Vice President Harris’s campaign signaling a potential shift in approach. The campaign’s outreach to key industry players aims to establish relationships that could influence future regulatory frameworks, reflecting a willingness to support “responsible business” practices. Ripple CEO Brad Garlinghouse has urged Harris to distance herself from critics of cryptocurrency to avoid losing voter support. He believes that Harris, with her familiarity with Silicon Valley’s dynamics, has an opportunity to shape the narrative on crypto regulation but warns against adopting a hardline stance that could be politically damaging.
A coalition of seven U.S. states has challenged the SEC’s regulation of cryptocurrency, arguing that it constitutes a “power grab” that could hinder innovation and exceed the agency’s authority. Led by Iowa Attorney General Brenna Bird, the states have filed an amicus brief to contest the SEC’s approach to regulating crypto. SEC Commissioner Hester Peirce, known for her crypto-friendly stance, has acknowledged the challenges faced by industry participants under the agency’s current “enforcement-only mode.” She highlighted the need for clearer rules to allow businesses to focus on innovation rather than legal disputes. The SEC’s recent closure of investigations into companies like Hiro Systems and Paxos indicates a nuanced approach to enforcement actions involving crypto entities.
