Candidate Harris Unlikely to Make Full-Throated Crypto Policy Before Election: Source

As a seasoned political analyst with over two decades of experience, I have seen countless campaigns navigate complex and rapidly evolving issues, and the current state of crypto policy in the 2024 presidential race is no exception. While Vice President Kamala Harris’s recent comments on digital assets may have stirred excitement within the industry, it seems that we should not expect a deep dive into her views on crypto before the U.S. elections.

During the weekend, Vice President Kamala Harris’s presidential campaign caused ripples in the cryptocurrency world with a casual remark regarding the sector. However, experts advise that the crypto industry might not see significant developments from her team in the remaining weeks leading up to the U.S. elections.

According to sources familiar with the conversations between Harris’s campaign and experts in the cryptocurrency field, Harris has been intentionally vague when she speaks about her presidency promoting technologies such as AI and digital assets while ensuring consumer and investor protection. As discussions regarding digital asset policy are currently at a high level and may not result in a specific stance until after voters have chosen who to elect, this suggests that cryptocurrency could be merely one aspect among many economic innovations that Harris might highlight during her campaign.

As a researcher, I have learned through my network that high-level representatives from the Harris campaign have maintained ongoing conversations with a select circle of industry experts and key figures, which encompasses individuals from Ripple Labs and Coinbase Inc. Multiple sources acquainted with these discussions have shared this information with me. Furthermore, it is known that Paul Grewal, the Chief Legal Officer at Coinbase, has participated in campaign meetings.

“The progress is real,” he said in a Monday interview with CoinDesk. He said it’s remarkable to see how far the Democratic candidate – and also her Republican opponent, former President Donald Trump – have come in just a matter of weeks.

Grewal expressed that what they desire are reasonable regulations, and they’re ready to abide by them. He felt optimistic about the feedback received from the Harris campaign.

According to Grewal, the awareness of what industry and crypto investors expect from a potential Harris administration is becoming more complex and detailed. However, it’s important to note that specific policy decisions might not be apparent immediately. He acknowledged that sometimes, things can take longer than we prefer.

Grewal stated that discussions about cryptocurrency are regularly taking place with both the Harris and Trump campaigns. Ripple chose not to comment on these talks, but other parties involved urged a dose of realism from the crypto community, who are closely watching statements from the Harris campaign, which has only been active for two months – even advisor Brian Nelson, known for his knowledge of cryptocurrency as the Treasury Department’s undersecretary for terrorism and financial intelligence.

In essence, Grewal stated that the campaigns don’t have the time or resources to thoroughly plan out regulatory strategies for cryptocurrencies any more than they do for other industries. It’s simply unreasonable and impractical to anticipate otherwise.

At a recent gathering, Anthony Scaramucci, the founder and managing partner of SkyBridge Capital who previously served as a Trump aide, mentioned that he is part of the team collaborating with the Harris campaign to establish their position on cryptocurrency matters.

As a crypto investor, I recently made an inquiry about a political candidate’s approach towards cryptocurrencies, but I haven’t received a swift response yet.

1) In her initial discussion about the technology, Harris’ optimistic approach mirrors President Biden’s earlier stance on cryptocurrency, as his executive order hinted at the White House’s backing for technological progress and U.S. competitiveness, provided that crypto innovations didn’t jeopardize consumers. This was in March 2022, before the fall of FTX and other notable digital assets firms, leading to increased efforts by U.S. financial regulators to safeguard the banking system from crypto and take legal action against numerous cases.

The vice president’s recent statement about cryptocurrency was meant as a signal that supporters’ aspirations for a U.S. policy shift in this area have been acknowledged, based on information from within the campaign circle. However, due to political constraints, her comments might not amount to much more than a symbolic gesture, as Harris may still be uncertain about who will control Congress if she wins, and thus needs some flexibility for strategic decision-making regarding legislation.

Trump has recently adopted a bullish stance on cryptocurrency following years of skepticism, and one of his family’s recent ventures is in the field of decentralized finance (DeFi). However, the initial details about World Liberty Financial, led by the Trumps, have faced criticism from some crypto enthusiasts. On the campaign trail, Trump is advocating for the crypto industry while also proposing pro-cryptocurrency policies if elected for a second term. He asserts that under his administration, the U.S. would aim to be recognized as the global leader in cryptocurrency.

Industry-funded surveys suggest that some individuals might take their cryptocurrency views into account when casting their votes.

In simpler terms, Grewal stated that it’s evident which group of voters is strongly favoring cryptocurrency in this contest, leading campaigns to focus on the voices they believe will have the greatest impact and generate the highest number of votes by November.