How Kamala Harris can rebuild crypto bridges burned by Biden

Can Kamala Harris bridge the gap between the Democratic Party and the crypto world after Joe Biden’s influence? Read how

There have been some notable developments in the US political arena recently.

After Joe Biden decided to drop out of the presidential race and endorse Kamala Harris, Harris quickly gained the support of her party’s donors, elected officials and other leaders.

Harris currently has the support of 3,107 delegates, according to an Associated Press poll, well above the 1,976 delegates needed for the nomination.

This number is unofficial, as Democratic delegates are free to vote for whichever candidate they choose when the party nominates its new nominee in August.

But Harris faces some tough challenges. The Democratic party has garnered a lot of negativity from the crypto community during Biden’s term, from regulatory overreach to abuse of power.

Now the crypto industry is wondering how Harris can differentiate herself from Biden’s stance and contrast with former President and Republican nominee Donald Trump.

Trump, meanwhile, has openly declared himself a “crypto candidate” during his rallies and will speak at the Bitcoin Conference in Nashville, Tennessee on July 25. This will be the first time a presidential candidate has attended the world’s largest annual Bitcoin (BTC) celebration.

Another intriguing aspect was the fact that Harris was set to speak at the conference. David Bailey, CEO of the Bitcoin 2024 conference, revealed that there were ongoing talks with Harris’ campaign about her potentially appearing at the highly anticipated cryptocurrency event.

We are in talks with the Kamala Harris campaign to speak at the conference. It would be very smart of her to reassert her Democratic position among the fastest growing voting bloc in the country. They are making their decision today.

— David Bailey🇵🇷 $0.65m/btc floor (@DavidFBailey) July 23, 2024

However, it has just been confirmed that Harris has decided not to speak at the Bitcoin 2024 Conference.

Meanwhile, decentralized prediction market Polymarket has seen a change in the odds for the ‘2024 Presidential Election Winner’, with Harris’ odds increasing to 36%, while Trump’s odds have dropped from a peak of 72% to 61%, but he is still seen as the favorite.

Let’s take a deeper look at the key challenges and strategic moves needed for Harris to win over crypto voters and improve her electoral chances.

Trump’s crypto game and Harris’ strategic opportunity

Kamala Harris faces unique challenges and opportunities as she attempts to gain the support of the crypto community.

Rumors that Trump could announce Bitcoin as the US’ strategic reserve asset at the Bitcoin Conference to be held on July 25 were started by Satoshi Law co-founder Dennis Porter.

Amid these developments, entrepreneur and Bitcoin enthusiast Mark Cuban stated that Harris’ team reached out to him with several questions about cryptocurrency, indicating that he wanted to understand and interact with the industry.

BREAKING: 🇺🇸 Kamala Harris’ team reaches out to Mark Cuban with questions about ‘crypto’

“The feedback I’ve gotten is that he’s going to be much more open to the business,” Cuban said. picture.twitter.com/5hKBfon9MY

— Radar🚨 (@RadarHits) July 23, 2024

Cuban also hinted that Harris could be more open to business, artificial intelligence and crypto than her predecessor.

She also championed tech regulation and addressed issues like misinformation and online harassment as California attorney general and later as a U.S. senator. Her efforts on AI regulation as vice president further enhance her credibility in the tech and crypto debate.

Despite this strong foundation, financial disclosures reveal that neither Harris nor her husband have investments in the crypto sector, preferring traditional assets like treasuries and emerging markets.

However, his previous campaign’s hiring of former Sacramento Kings chief technology officer Ryan Montoya, who has been a pioneer in the adoption of Bitcoin in sports, points to his indirect connection to the crypto world.

Montoya’s current role in the White House, though focused primarily on planning, suggests that Harris is aware of crypto trends in her environment.

Adding another layer to the strategy, Harris’ vice presidential pick will speak volumes. Many of the names currently under consideration, such as Pennsylvania Governor Josh Shapiro, North Carolina Governor Roy Cooper, Arizona Senator Mark Kelly and Transportation Secretary Pete Buttigieg, are known for their pro-crypto stances.

Choosing a running mate with this perspective could show the crypto community that Harris is serious about creating a crypto-friendly environment, which could further solidify her position.

The crypto community’s call for change

Gemini co-founder and recent $1 million donor to Trump’s campaign, Tyler Winklevoss, didn’t hold back when sharing his criticism of Harris on X. He tweeted that Harris needs to take drastic measures to win back the crypto vote.

Talk is cheap. It must begin immediately with shooting. @GaryGenslerwithdraw all @SECGov sanctions actions against good actors and termination of Operation Chokepoint 2.0. He won’t do it, so he won’t have a chance to regain the crypto voting block. It’s time… https://t.co/KBzqZZVMSH

— Tyler Winklevoss (@tyler) July 23, 2024

Winklevoss insisted that he must fire SEC Chairman Gary Gensler, end SEC enforcement actions against legitimate actors, and halt Operation Chokepoint 2.0. Without these actions, Winklevoss believes Harris has no chance.

Rep. Tom Emmer of Minnesota also joined the chorus of concerns. Emmer cited concerns about Harris potentially appointing Elizabeth Warren or Gary Gensler as Treasury secretary, an approach he argued could undermine free markets and stifle innovation.

Many fear that Kamala Harris will appoint Elizabeth Warren or Gary Gensler to the Treasury Department.

Their mission to subvert free markets, innovation, and global competition will destroy our financial system.

We can’t allow this.

— Tom Emmer (@GOPMajorityWhip) July 23, 2024

What seems to be prevalent is the collective disdain for Gensler within the crypto community, with many feeling that his tenure has led to various enforcement actions that have stifled the market, making him one of the most disliked figures in the crypto world.

Meanwhile, Wayne Vaughan, founder of crypto project Tierion, expressed similar frustrations. He claimed that Democrats have spent years trying to undermine Bitcoin and suggested that Harris’ request to speak at the Bitcoin Conference was merely a desperate attempt to gain votes and funding from pro-crypto Super PACs.

Democrats spent four years trying to destroy Bitcoin.

Kamala Harris wants to speak at the Bitcoin Conference because she’s desperate to avoid losing this election. Democrats want some of that sweet money raised by pro-crypto Super PACs.

Don’t be fooled. Vote for them. https://t.co/qtL3K31FQK

— Wayne Vaughan (@WayneVaughan) July 23, 2024

Eleanor Terrett, a journalist for Fox News, cited a letter to Harris from the Chamber of Digital Commerce to add optimism.

🚨SCOOP: Crypto trade association @DigitalOda wrote a letter @VP Harris urges him to take a forward-thinking approach to digital assets. The letter calls for him to use pro-crypto language in the Democratic party platform, pick a crypto-friendly running mate, and… pic.twitter.com/5ldQxtQVBK

— Eleanor Terrett (@EleanorTerrett) July 22, 2024

The letter called on Harris to take a forward-looking approach to digital assets, such as using crypto-friendly language in the Democratic Party platform, electing a crypto-friendly vice president, and engaging with industry leaders.

The letter expressed hope that under Harris’ leadership the Democratic Party could take a more supportive stance towards digital assets, in line with the expectations of many Americans who believe in crypto.

What does the future hold for Harris and crypto?

The growing importance of cryptocurrencies in the U.S. is clear. A Grayscale report reveals that one in three American voters are more likely to invest in Bitcoin or other cryptocurrencies following the approval of a spot Bitcoin ETF.

Additionally, 47% of American voters expect to include cryptocurrencies in their investment portfolios, indicating a significant shift in public opinion.

Meanwhile, Donald Trump, who has previously criticized crypto, has changed his stance significantly. In 2019, he said, “I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is highly volatile and airborne.”

Fast forward to today, Trump embraced crypto during his campaign, declaring on social media that he was “very positive and open-minded about crypto companies and everything related to them.”

In June, he met with Bitcoin miners and made a statement on his Truth Social account, stating that Bitcoin mining could be “our last line of defense against CBDCs” and that he wanted the remaining Bitcoins to be mined in America.

Despite Trump’s recent embrace of crypto, data shows that crypto is a bipartisan issue, with ownership rates nearly identical between Republicans (18%) and Democrats (19%), suggesting that crypto could be a unifying factor in American politics, cutting across traditional party lines.

The Biden administration has faced extreme criticism for its handling of crypto regulation. The protracted Ripple vs. SEC lawsuit, aggressive actions against Coinbase and other exchanges, and the blanket classification of all crypto assets except Bitcoin as securities have created a hostile environment for crypto innovation.

The administration is now attempting to fix these issues by approving spot ETH ETFs, indirectly recognizing them as commodities.

Harris has a unique opportunity to correct these missteps and increase the Democratic Party’s attention to the crypto community. She can attract a broader constituency by addressing the industry’s concerns and adopting a more crypto-friendly stance.

The crypto industry has already outlined its recommendations, and it remains to be seen how Harris will respond. If she can effectively communicate her stance on crypto and propose concrete actions, she could win over this influential bloc of voters.

Regardless of the outcome of the presidential election, cryptocurrencies are likely to win.