As the Democratic presidential nominee, Vice President Kamala Harris may escalate the Biden administration’s strict cryptocurrency regulations, based on recent industry reports and expert analysis.
Kamala Harris Advisor Choices Signal Potential Crypto Crackdown
Harris has reportedly engaged Brian Deese and Bharat Ramamurti, former economic advisers in the Biden administration, known for opposing the Clarity for Payment Stablecoins Act of 2023, deeming it too lenient for issuers. The crypto community has raised concerns about this choice of advisors.
Alex Thorn, head of research at Galaxy, stated, “Her advisor choice suggests she will keep Biden’s hostile attitude to crypto.”
in april, @rkuttnerwrites confirmed leo’s reporting, saying that it was specifically deese and ramamurti who intervened to kill the stablecoin legislation (https://t.co/anTydcT2h2)
keep in mind that this bill would have legalized but *heavily regulated* stablecoins — both with… pic. .com/4eFOGSyPfI
— Alex Thorn (@intangiblecoins) August 13, 2024
Deese and Ramamurti’s backgrounds are significant, especially considering recent U.S. banking sector events. In March 2023, the crypto-friendly banks Silicon Valley Bank, Silvergate Bank, and Signature Bank faced sudden collapses or forced closures.
This series of events was dubbed “Operation Chokepoint 2.0” by some industry observers, who viewed it as a coordinated effort to distance the banking sector from cryptocurrency businesses.
we got some intel on the harris campaign’s current posture on economic policy, and who they are working with, from some bloomberg @business reporting this morning
deese and ramamurti are two key architects of the biden admin’s anti-crypto crusade, including chokepoint 2.0 pic. .com/73yME7qEnZ
— Alex Thorn (@intangiblecoins) August 13, 2024
Thorn suggests that these advisors played significant roles in what some perceive as an “anti-crypto crusade,” including the events surrounding the bank closures.
Ramamurti, known as a vocal critic of the cryptocurrency industry, could signal an intensification of this stance through his role in Harris’ campaign.
However, the vice president is set to unveil her economic policy agenda in a mid-August speech, which could provide more insights into her approach toward cryptocurrency regulation.
Skepticism Within the Crypto Community and Implications of Election on Harris’ Crypto Stance
Recent events have fueled skepticism about Harris’ intentions toward the crypto industry. The enforcement action taken by the Federal Reserve against the crypto-friendly Customers Bank on August 9 sparked debate about the administration’s true stance.
Gemini co-founder Tyler Winklevoss commented on the situation, suggesting that “Operation Choke Point 2.0 remains in full swing,” expressing doubts about Harris’ purported efforts to reset relations with the cryptocurrency industry.
Today, the Fed confirmed that Operation Choke Point 2.0 remains in full swing, provided valuable insight into how it works, and verified that the Harris crypto "reset" is a scam. The Fed revealed all of this in a 13-page enforcement action it issued this morning against… pic. .com/zhLRRWAH0E
— Tyler Winklevoss (@tyler) August 9, 2024
Cardano founder Charles Hoskinson echoed these concerns, warning that a Harris vote could harm the U.S. crypto industry, suggesting a continuation of the current administration’s “war on crypto.”
GM 👋
"The Biden administration is engaged in a coordinated effort to kill crypto."
So tweeted Charles Hoskinson, creator of Cardano.
"This November, if you vote for J. Biden as a crypto holder, understand that this administration's intention is to destroy the U.S. crypto… pic. .com/6SLqn9u2b8
— Nfinity Labs (@NfinityLabs) May 10, 2024
With less than 90 days until the election, crypto supporters who are open to voting for Harris are facing pressure to make their case. Recent polls show Harris in a tight race with Republican nominee Donald Trump in battleground states.
The prediction platform Polymarket has rated the race between Harris and Trump as a “tossup,” reflecting the uncertainty surrounding the election’s outcome and its potential impact on crypto policy.
Harris has yet to clearly articulate her cryptocurrency stance, though more details are expected in the coming weeks.
The scheduled face-off with Trump in a September 10 televised debate on ABC, along with potential additional debates on September 4 and 25, may provide opportunities for Harris to clarify her position on crypto regulation.