Senate Majority Leader Chuck Schumer wants to pass crypto legislation in 2024. Democrats insist Kamala Harris is friendlier to industry than Joe Biden and Donald Trump.
Half a dozen prominent Democrats reaffirmed their support for crypto in a virtual “town hall” Wednesday night, including Senate Majority Leader Chuck Schumer, who said he wants to pass sweeping crypto legislation before the end of 2024.
Organized by industry supporters of Vice President Kamala Harris, the Democrats' nominee in the upcoming presidential election, the town hall is a kind of double-edged campaign.
First, it represents an olive branch to the crypto industry, which has often lamented being persecuted under President Joe Biden's administration.
The town hall was also a reference to Harris, who has not publicly expressed his views on crypto.
The 2024 election is turning into a nail-biter. It's unclear how many people will vote based on candidates' attitudes toward crypto.
But US presidential elections are often decided by narrow margins, and candidates are reluctant to defy an entire voting bloc, however small.
Aware of the stakes, the crypto industry is kept on its toes by pouring $183 million into political action committees to support crypto-friendly candidates.
Biden's antagonistic stance toward crypto has dampened the Democrats' chances of recapturing the White House, some fear.
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Industry leaders say his withdrawal from the race last month has given Democrats a chance to regain momentum.
Crypto 4 Harris
The industry is watching the Harris campaign closely for signs that Harris will adopt a friendlier stance toward technology if he wins in November.
“I'm a proud Democrat, but like many people here tonight, I share the frustration of the last few years,” said Jonathan Padilla, CEO of Snickerdoodle Labs, one of the organizers of Crypto4Harris.
“Everybody holding this call and speaking here tonight believes we're here because of the opportunity to reset.”
Colorado Governor Jared Polis, a longtime proponent of blockchain technology, struck an optimistic note.
“What's interesting about Kamala Harris is that [she]Actually, it's from California — the center of innovation, close to Silicon Valley,” he said.
“She's a listener, right?”
Trump's crypto courtship
The Securities and Exchange Commission and other US regulators — led by Biden appointees — have eased the hammer on crypto since FTX's $8 billion collapse in November 2022.
They have pushed the banks Traffic in digital assets and crypto heavyweights have been accused of offering unregistered securities to eliminate clients who have taken them to court.
Lawmakers are no exception. Massachusetts Senator Elizabeth Warren infamously rallied nearly 100 lawmakers in 2023 to fight “crypto-financed terrorism.”
This year, the industry found an unlikely savior in former President Donald Trump, who is seeking re-election.
Once a crypto-skeptic, Trump aggressively courted the industry in 2024.
“From now on, the rules will be written by people who love your industry, not hate your industry,” he said at a Bitcoin conference in July.
The gambit is working: Several crypto executives have thrown their weight behind Trump, including the Winklevoss twins and venture capitalist Marc Andreessen.
Harris's 'Reset'
Harris wants a “reset” with the crypto industry Financial Times reported. The Crypto4Harris campaign seeks to help this push.
But some in the industry are skeptical.
“Harris looks like Warren 2.0,” crypto investor and influencer Nick Carter wrote that In X, citing reports that Harris sought advice from longtime Warren aide Bharat Ramamurthy.
Speakers on Wednesday tried to push back against the notion that Trump is a pro-crypto candidate.
“I'll tell you there's only one candidate running for president that's called a crypto scam, and that's Donald Trump,” said Representative Wylie Nickell, a Democrat from North Carolina.
“He did absolutely nothing for four years as president and was openly hostile until recently.”
Billionaire businessman Mark Cuban, an outspoken Harris supporter, agreed.
“Crypto is not about elites. It's about equality,” he said. “And the Republicans couldn't care less. They want to see bitcoin maxis rich.
'North Star'
But the most significant comments came from Schumer, one of the most powerful Democrats in the country.
“We all believe in the future of crypto,” he said. “My goal is to get something passed by the Senate and become law by the end of the year.”
If the US doesn't, it risks pushing the industry “overseas, to lowest-common-denominator countries, where there's no regulation.”
He pointed to two initiatives as models for future crypto legislation: the CHIPS and SCIENCE Act, which led to a boom in domestic semiconductor manufacturing, and the government's efforts on artificial intelligence.
“Innovation is our north star when it comes to AI or crypto, but we also need to provide some safeguards to keep the users of this technology safe, protect our national security and ensure that this technology cannot be misused by criminal organizations. Or other nefarious actors,” he said.
Schumer offered few details, but he seemed to suggest that the Senate consider some version of the bill drafted by members of the Senate's Agriculture Committee.
Despite the line-up of prominent legislators, the event was also notable for people who were not included.
None of the founders of major crypto businesses or protocols were present, a sign that they were not convinced by the Democrat's announcements.
“We need Kamala to pivot and for her to embrace it and take control,” said Representative Darren Soto, a Democrat from Florida.
“And I'm absolutely confident that we're going to see some great policies and announcements coming out of her campaign.”
Alex Gilbert News' is a New York-based DeFi correspondent. You can contact him [email protected].
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