When Kamala’s crypto circus came to town — and bombed

What does it mean for Kamala Harris’ campaign that a virtual meeting designed to woo the crypto community made them feel more aligned with Donald Trump?

How did it all begin?

A virtual rally organized by the ‘Crypto For Harris’ campaign to rally support for Kamala Harris’ possible presidency from the digital asset community has ended in failure.

The event, billed as a ‘key event’, failed to impress many in the industry and even sparked backlash, with notable figures such as Gemini co-founder Tyler Winklevoss calling it a “clown show”.

Top Democratic figures, including Senate Majority Leader Chuck Schumer, Senators Debbie Stabenow and Kirsten Gillibrand and tech giant Mark Cuban, took the stage during the session that lasted more than 90 minutes.

Despite his best efforts, the event was largely seen as a “missed opportunity” for the Vice President to solidify his stance on cryptocurrency.

Instead, many industry leaders found themselves more aligned with former President Donald Trump, signaling potential fractures in the party’s approach to digital assets.

Harris and her campaign team were not present at the event, further fueling the criticism.

Exposing the missteps of the ‘Crypto for Harris’ town hall meeting

Harris’ absence was the elephant in the room, and it didn’t go unnoticed, with many viewers eagerly waiting to see what Harris’ potential crypto policy would be.

There was a strong desire to see if the Biden administration would move away from its hardline stance on cryptocurrencies, especially the aggressive tactics used by the SEC under Gary Gensler.

But instead of clarity, viewers were left with more questions than answers.

I still don’t know who Kamala Harris is and what she thinks about our industry

— Brandon (@BranBTC) August 15, 2024

Schumer, a prominent Democratic figure, did his best to fill the void. His speech was well-prepared and he positioned himself as a newly minted crypto ally, promising to push for “sensible” crypto legislation before the end of the year.

Schumer’s rhetoric was strong, arguing that cryptocurrencies are “here to stay, no matter what” and that balanced regulation is needed that protects consumers while encouraging innovation.

He even made a veiled reference to some of his colleagues, referencing the show-off policies of some, like Senator Elizabeth Warren.

Cuban’s brief appearance, however, did little to enliven the debate; his criticisms of Republicans’ stance on cryptocurrency failed to gain traction with viewers.

The town hall format also drew criticism. CoinFund founder and CEO Jake Brukhman expressed disappointment, telling Fox Business, “I thought the town hall was about hearing people’s opinions… instead we got a few lectures from attendees about their views on crypto and where this should go politically.”

Brukhman’s sentiment was shared by many who felt the event lacked the interactive element that typically defines a town hall meeting. The use of pre-recorded messages from figures like Senators Gillibrand and Schiff served to diminish the authenticity of the event.

It was embarrassing. Zero content, completely scripted, no feedback (which is the point of a town hall meeting) and no real industry buy-in.

There are many ways to signal a reset, but insulting people’s intelligence isn’t one of them.

— 0xJJ (@0xJJ_) August 15, 2024

“I was hoping Harris would explain his crypto policy and how Democrats would address the issue of crypto companies being alienated from banks,” said Caitlin Long, CEO of Custodia Bank.

Another important issue, the SEC’s hostile attitude toward the industry under Gensler, was not addressed, further inflaming an already skeptical audience.

All in all, the event feels like a missed opportunity, with many industry leaders and attendees feeling more disconnected than ever from a campaign that appears increasingly less connected to the concerns of the digital asset community.

What are Harris’ chances and what does this mean for crypto?

Harris’ town hall meeting may have been bumpy, but her chances of becoming the next US president are not.

Harris is currently seen as the favorite to win the 2024 election, with a 53% chance of winning against Republican Party candidate Trump, whose odds have fallen to 44% in recent weeks, according to cryptocurrency-backed betting platform Polymarket.

Interestingly, as Harris surged ahead in the polls, the price of Bitcoin (BTC) also took a hit. Coincidence? Bernstein analysts don’t think so.

A recent report suggested that market sentiment interpreted a Trump victory as bullish for cryptocurrencies, while a Harris victory could be bearish; at least in the short term, this points to the strained relationship between the crypto community and the current administration, which Harris has yet to directly address.

But the Harris campaign isn’t completely out of the crypto loop. Her team recently added two key advisors with significant ties to the industry.

David Plouffe, an advisor to former President Barack Obama, previously served on Binance’s global advisory board.

Meanwhile, Brian Nelson, who works at the Treasury Department’s Office of Terrorism and Financial Intelligence, was named in a lawsuit filed against Binance for violating sanctions and anti-money laundering laws.

So what does all this mean for crypto? On one hand, Harris’ rising political fortunes could point to greater regulatory scrutiny, especially if her administration continues the hard-line approach seen in the Biden years.

On the other hand, his close ties to industry insiders like Plouffe and Nelson could herald a more nuanced approach, perhaps a balancing act between regulation and innovation.

So, as we head toward the 2024 elections, the crypto community may find itself in a strange spot: caught between the excitement of a political showdown and the uncertainty of what comes next.

Will a Harris presidency mean tighter regulations or could it usher in a new era of crypto innovation? Only time will tell.