US Election Sparks Crypto Policy Debate Amid Trump & Harris Campaigns

The US election has fueled the discussion on crypto policies as Donald Trump and Kamala Harris outline contrasting strategies. A former crypto skeptic, Trump has assembled a transition team that appears to have a lot of support for the digital asset industry. On the other hand, Harris, currently serving as the Vice President, is receiving increasing backlash for being linked to the Biden administration’s anti-cryptocurrency policy.

Trump Pro-Crypto Transition Team Ahead of US Election

According to a thread by Alexander Grieve, the VP of government affairs Paradigm, several members of Donald Trump’s transition team are known to be pro-crypto, while Kamala Harris has not made her stance on cryptocurrencies very clear, hence setting the stage for the Trump vs. Harris crypto debate. 

As per CoinGape, Howard Lutnick, CEO of Cantor Fitzgerald, will be the co-chairman of the team. The CEO is a vocal supporter of Bitcoin, having recently launched a $2 billion Bitcoin financing fund. Linda McMahon, the chairwoman of the America First Policy Institute (AFPI), also gets on the team, with AFPI openly against CBDCs and in support of private stablecoins.

Ok — with Trump transition announcement this AM, we can do a real head-to-head comparison.

Trump critics say his full-on embrace of crypto is overshadowed by critical comments of it in the past, and that his admin can’t be trusted to prioritize crypto.

These same critics…

— Alexander Grieve (@AlexanderGrieve) August 16, 2024

Concurrently, Donald Trump Jr. and Eric Trump are directly involved in the formation of a cryptocurrency company, indicating that a Trump government would support crypto-friendly policies. JD Vance, the first vice-presidential candidate to own crypto, is another strong link in the chain of Trump’s transition to the next term, thus emphasizing the candidate’s support for the industry.

Harris Advisors and Anti-Crypto Track Record

On the other hand, the crypto community is not enthusiastic about Kamala Harris’s campaign and her potential administration, as they are with Trump’s. The Trump vs. Harris line can be drawn based on the figures associated with Harris, most of whom have played a critical role in the Biden administration’s robust antiregulatory actions against crypto.

Among them are Brian Deese, the mastermind of the ‘Chokepoint 2. 0’ strategy, which focused on crypto businesses, and Bharat Ramamurti, an opponent of digital assets and the key ideologue of ‘Bidenomics’.

Others in Harris’s orbit include Brian Nelson, Undersecretary of the Treasury for Illicit Finance, and SEC Chair Gary Gensler. 

Consequently, the reappointment of Gary Gensler as the SEC Chairman whose tenure lasts through 2026 also adds to the worries. Gensler has been a strong proponent of crypto and has a considerable influence in enforcing the regulations. According to the thread, it would be difficult for Harris to remove him from the position of SEC Chair if she wins the US election.

Another Harris pick who might be confirmed is Caroline Crenshaw, who is seeking another term as SEC commissioner. Crenshaw has been an outspoken critic of Bitcoin ETFs in the past due to concerns regarding money laundering. Moreover, Christy Goldsmith Romero, a friend of Better Markets and a supporter of Warren, may be named the FDIC Chair in the Harris administration.

Crypto4Harris Criticism

The “Crypto4Harris” town hall meeting held last week to rally the digital asset community behind Kamala Harris sparked backlash and illustrated the divergence between Trump and Harris’s stances on cryptocurrencies. Harris’ absence was also noticed at the event, and the lack of clear policy direction also did not make the participants happy. Some of the biggest names in the crypto sphere, such as the Winklevoss twins, spoke out against the event, with Tyler Winklevosss referring to it as a “clown show.”

Excellent analysis by @AlexanderGrieve. Personnel ultimately shape policy so this is a good time for each side to clarify the signals they’re sending on crypto policy. There are some extraordinary Democratic leaders who are pro crypto, led by @SenSchumer, @SenGillibrand,… https://t.co/uYn5QY5gmI

— Faryar Shirzad 🛡️ (@faryarshirzad) August 16, 2024

On the other hand, Trump has taken a positive approach towards cryptocurrencies which is why many influential people from the industry backing him. Coinbase Chief Policy Officer Faryar Shirzad emphasized that personnel shape policy, underlining the importance of the individuals surrounding each candidate.

Donald Trump’s evolving stance on cryptocurrency is marked by his recent disclosure of holding between $1 million and $5 million worth of Ether in a cold wallet. His support for digital assets, a departure from his earlier skepticism, is central to his campaign. Ahead of the US election Trump has pledged to build a national Bitcoin reserve and position the United States as a global leader in the crypto sector through favorable policies.

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Kelvin Munene Murithi

Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

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