How Kamala Harris Could Usher in a Clean Slate for Crypto Regulation

With
an
endorsement
from
Biden,
Vice
President
Kamala
Harris
has
quickly
become
the
presumptive
nominee
for
Democrats,
raising
small-dollar
donations
at
a
pace
reminiscent
of
Barack
Obama’s
insurgent
2008
presidential
campaign.
However,
the
enthusiasm
stops
at
the
door
of
a
well-funded
crypto
industry
that
has
taken
an
offensive
position
to
protect
itself
from
a
hostile
regulatory
environment
and
driven
it
to
coalesce
around
a
single-issue
voting
block
set
to
cast
its
votes
for
the
GOP
nominee.

Almost
as
soon
as
the
Biden
news
broke,
I
began
to
see
social
media
posts
from
the
crypto
community
about
what
a
Harris
administration’s
stance
on
crypto
would
be.
Would
she
continue
a
regulation-by-enforcement
and
hostile
policy
position,
or
embrace
the
opportunity
to
reimagine
crypto
policy
with
a
view
toward
embracing
the
new
economy?
Or
set
off
in
a
new
direction?

Then,
I
saw
a
flurry
of
social
media
musings
that
Vice
President
Harris
is
considering
attending
the
Bitcoin
2024
Conference,
taking
place
from
July
25
to
July
27
in
Nashville,
Tennessee.
Trump,
Michael
Saylor,
and
Elon
Musk
are
also
expected
to
appear,
making
it
a
significant
event
with
high
stakes.

On
Thursday,
July
24,
conference
organizer
and
Bitcoin
Magazine’s
CEO
David
Bailey

shared
on
X
that
VP
Harris
declined
to
attend.
It
seemed
highly
unlikely
that
she
would
be
able
to
attend
given
that
scheduling
a
senior
Federal
official
takes
longer
than
48
hours.
The
process
involves
coordination,
review
and
vetting
by
multiple
offices
and
the
requisite
approvals.

Nonetheless,
even
the
consideration
is
a
win.
With
the
crypto
industry’s
voice
on
the
Harris
campaign’s
radar,
Harris
now
has
an
opportunity
to
address
a
deeply
concerned
and
invested
group
of
bitcoiners
and
begin
the
reparative
work
of
bridge-building
to
counter
the
anti-crypto
aggression
and
regulation-by-enforcement
initiatives
deployed
by
the
current
administration.

Under
Biden,
cryptocurrency
regulation
has
been
marked
by
a
confusing
and
confounding
enforcement-heavy
approach,
largely
influenced
by
Senator
Elizabeth
Warren
(D-MA).
Known
for
her
skepticism
of
the
crypto
industry,
Warren
has
advocated
for
strict
regulatory
measures
to
protect
consumers
and
maintain
financial
stability.
Her
influence
is
evident
in
the
administration’s

“Chokepoint
2.0”
strategy
and
in
the
stance
of
her
ally
SEC
Chair,
Gary
Gensler,
as
well
as
prudential
regulators
who
restricted
the
crypto
industry’s
access
to
traditional
banking
services,
effectively
“de-banking”
the
sector.

Vice
President
Harris’s
prior
approach
to
technology
regulation
is
characterized
by
a
more
moderate
tone
compared
to
the
current
administration’s
approach.
Throughout
her
career,
she
has
forged
strong
relationships
with
major
technology
companies
such
as
Facebook
and
Google.
She
has
been
a
notable
presence
at
their
headquarters
and
has
enlisted
employees
and
allies
from
these
companies
to
advise
her
campaign
on
tech
policy.
Her
approach
emphasizes
finding
a
balance
between
regulation
and
allowing
technological
advancement.
A
strategic
policy
shift
to
incorporate
past
openness
to
innovation
coupled
with
her
campaign’s
focus
on
economic
empowerment
of
the
middle
class
may
create
an
opportunity
for
a
both/and
approach
that
optimizes
investor
and
consumer
protections
with
the
support
of
robust
development
of
the
Web3
economy
on
the
rails
of
blockchain
and
powered
by
cryptographically
secured
digital
assets.

But
what
signals
that
she
would
be
open
to
a
pivot
on
crypto
policy?
For
one,
billionaire
Mark
Cuban
noted
on
X
this
week
that
Harris’
team
has
been
asking
numerous
crypto-related
questions.
That,
added
to
her
pro-innovation
record
and
entertaining
discussions
of
appearing
at
Bitcoin
2024
all
bode
well
for
a
different
approach
in
a
Harris
Administration.

As
the
Democratic
presidential
nominee,
Harris
has
the
unique
opportunity
to
chart
a
new
course
for
crypto
policy,
one
I
am
calling
“New
Economy
2025,”
which
balances
sensible
and
transparent
regulation
with
robust
innovation
for
investors,
consumers
and
businesses
alike.
This
approach
would
ensure
that
the
U.S.
remains
a
leader
in
the
digital
asset
economy
while
promoting
financial
inclusion
and
protecting
consumer
interests.

To
that
end,
here
are
ten
policy
shifts
that
could
redefine
the
Democratic
party’s
stance
on
digital
assets
and
foster
a
more
inclusive
financial
ecosystem
under
a
Harris
presidency:

What:
Revise
existing
securities
laws
to
clarify
the
distinction
between
a
security
and
a
commodity
in
the
context
of
cryptocurrencies.
I
advocated
strongly
for
this

in
my
testimony
before
the
House
Financial
Services
Subcommittee
on
Digital
Assets,
Financial
Technology
&
Inclusion.

How:
Ensure
relevant
and
specific
agencies
are
designated
to
regulate
the
crypto
industry,
preventing
overly
broad
or
conflicting
interpretations
that
could
hinder
market
growth
and
stifle
innovation.

What:
Modify
the
Bank
Secrecy
Act
and
other
banking
regulations
to
create
clear
guidelines
for
banks
dealing
with
cryptocurrency
businesses.

How:
Promote
a
crypto-friendly
banking
environment,
enabling
financial
institutions
to
engage
with
the
crypto
sector
confidently,
reducing
perceived
and
actual
risks,
and
fostering
greater
integration
and
accessibility.
Additionally,
consider
the
legislative
and
regulatory
shifts
needed
to
add
bitcoin
reserves
as
part
of
the
Central
Bank’s
reserve
portfolio.

What:
Reform
tax
policies
to
address
the
unique
aspects
of
digital
assets,
providing
clear
guidelines
on
the
taxation
of
crypto
transactions
and
holdings.

How:
Create
a
framework
for
individuals
and
businesses
to
comply
with
tax
obligations
while
participating
in
the
digital
economy
safely
and
legally,
ensuring
fair
participation
across
all
economic
income
levels.

What:
Strengthen
consumer
protection
laws
specific
to
the
crypto
market,
ensuring
transparent
disclosures
and
protections
against
fraud.

How:
Implement
measures
to
provide
clear
recourse
for
victims,
building
consumer
trust
and
ensuring
a
safer
crypto
market,
particularly
protecting
vulnerable
populations.

What:
Formulate
strong
privacy
laws
to
safeguard
individual
data
in
blockchain
and
digital
identity
systems.

How:
Promote
privacy-friendly
digital
identities
and
ensure
crypto
transactions
respect
individual
privacy
rights,
protecting
marginalized
communities
from
exploitation.

What:
Incorporate
cryptocurrency
and
blockchain
education
into
national
education
standards,
including
financial
literacy
programs.

How:
Equip
individuals
with
the
knowledge
needed
to
navigate
the
digital
economy
confidently
and
responsibly
through
school
curriculums
and
adult
education
programs,
ensuring
opportunities
for
all
demographics.

What:
Allocate
funding
to
support
research
and
development
in
blockchain
technology.

How:
Encourage
innovation,
create
jobs,
and
maintain
the
U.S.’s
competitive
edge
in
the
global
digital
economy
by
investing
in
R&D,
particularly
benefiting
underserved
communities
through
job
creation
and
economic
inclusion.

What:
Encourage
the
development
and
adoption
of
decentralized
finance
(DeFi)
platforms
to
offer
financial
services
without
traditional
intermediaries.

How:
Increase
access
to
financial
services
for
underserved
communities,
promoting
financial
inclusion
and
bridging
the
wealth
gap.

What:
Establish
partnerships
between
government
agencies
and
private
blockchain
companies
for
public
infrastructure
projects.

How:
Develop
digital
identity
systems
and
transparent
supply
chains
leveraging
blockchain
technology,
improving
public
services
and
economic
opportunities
for
all.
Also,
consider
regulatory
sandboxes
to
further
promote
and
support
innovation
in
collaboration
with
government
stakeholders
to
learn
so
they
can
effectively
lead.

What:
Position
the
U.S.
as
a
global
leader
in
crypto
regulation
by
collaborating
with
international
bodies.

How:
Develop
harmonized
regulations
to
ensure
the
U.S.
plays
a
central
role
in
shaping
the
future
of
the
global
digital
economy,
promoting
stability
and
fostering
cross-border
innovation.

By
implementing
these
initiatives,
the
Harris
administration
can
create
a
regulatory
environment
that
not
only
protects
investors
and
fosters
innovation
but
also
promotes
economic
justice
and
opportunity
for
all,
ensuring
the
U.S.
remains
at
the
forefront
of
the
digital
asset
economy.

“New
Economy
2025”
vision
would
emphasize
the
transformative
potential
of
blockchain
and
cryptocurrency,
harnessing
technology
to
create
a
more
equitable
and
inclusive
financial
system
that
ushers
in
increase
investment
opportunities,
job
creation
and
economic
growth,
consumer,
investor
and
industry
protection
from
fraud
and
scams,
tax
simplification,
financial
inclusion
and
economic
justice,
and
industry
stability
and
confidence.

Crypto
is
political;
not
partisan.
At
least
it
shouldn’t
be.
Harris’s
track
record
of
championing
technological
advancement
and
protecting
privacy
rights
positions
her
uniquely
to
harness
the
transformative
potential
of
blockchain
and
cryptocurrency.

As
we
move
forward,
advocating
for
regulatory
clarity,
consumer
protections,
financial
literacy,
and
global
collaboration
is
essential
to
solidify
the
U.S.
as
a
leader
in
the
digital
asset
economy.
By
embracing
this
reimagined
approach,
we
can
truly
democratize
access
to
financial
opportunities,
empower
marginalized
communities,
and
uphold
the
values
of
freedom
and
privacy,
paving
the
way
for
a
prosperous
and
inclusive
New
Economy
2025.

Note:
The
views
expressed
in
this
column
are
those
of
the
author
and
do
not
necessarily
reflect
those
of
CoinDesk,
Inc.
or
its
owners
and
affiliates.