Vice President Kamala Harris Embraces Cryptocurrency and Blockchain Technology

As Harris Embraces Crypto, Her Coalition Holds -- For Now

Vice President Kamala Harris is cozying up to the cryptocurrency industry in the final stretch of the presidential campaign, embracing an industry scorned by progressives and giving hope to moderates who want her administration to take a more business-friendly approach to the economy. Progressive policy makers largely celebrated the economic approach of President Joe Biden, whose administration embarked on an effort to reverse what liberals saw as 40 years of corporate dominance of policy-making in Washington. The approach also kept the Democratic Party, which seemed at the edge of an ideological fracture during the 2020 primaries, largely united. Harris' embrace of crypto -- coming just two years after the collapse of FTX, the cryptocurrency exchange that embarrassed the industry and erased more than $1 trillion of investment, including many people's life savings -- is her most noteworthy reversal from Biden's economic approach so far. Her crypto-friendly approach is partially a reflection of how the industry has used money to conquer Washington. It has won allies throughout Congress and managed to enlist a small army of digital asset holders to do its political bidding. Whether it's a sign of a broader ideological shift on Harris' part is unclear, and the Democratic nominee may have an interest in keeping it that way as she tries to keep every possible element of the coalition happy ahead of an ultra-close November election. Interviews with crypto supporters, opponents and Harris allies, however, point to a scenario where Harris may be seeking to correct what moderate Democrats view as a major mistake by the Biden administration -- an unwillingness in their eyes to even engage with the business community, including crypto -- without wholly abandoning many of the policies the party's progressive wing loves. "I find it telling that Vice President Harris is proactively signaling openness to embracing emerging technologies like blockchain," Rep. Ritchie Torres (D-N.Y.), one of the biggest boosters of crypto in the Democratic Party, told HuffPost, referring to the decentralized ledger that undergirds the crypto system. "I actually think as a product of Silicon Valley, she has a natural openness to new technology, more so than the Biden administration." But a slightly more friendly approach to Silicon Valley (Harris mentioned AI, quantum computing and blockchain as "sectors that will define the nation the next century" in an economic speech in Pittsburgh on Wednesday) does not inherently mean an abandonment of many of the labor-friendly, climate change-fighting industrial policies the Biden administration pursued. "It's easy to see why people think this is the Biden Administration plus Silicon Valley," said Michael Madowitz, the principal economist at Roosevelt Forward, the political arm of the progressive think tank, the Roosevelt Institute. "But that doesn't mean she can't focus on balancing corporate power, on making sure American workers get a fair shake." Many of those progressive-friendly policies were included in an 82-page policy manifesto, "A New Way Forward For The Middle Class," which Harris' campaign released alongside her speech in Pittsburgh. They include hyping the Biden-Harris administration's antitrust agenda, including their fight against junk fees. The manifesto also promises to take on anti-competitive practices in the pharmaceutical, food and housing industries. In the same speech, however, she took care to deliver some calming words to the business community, saying she knows "the limitations of government." She added: "I've always been and will always be a strong supporter of workers and unions, and I also believe we need to engage those who create most of the jobs in America." What may ultimately determine the ideological direction of Harris' administration is who she hires. Crypto supporters are determined to oust Securities and Exchange Commission Chairman Gary Gensler, for instance. And the presence of Harris campaign advisors with closer ties to big tech means the door may be open more for policy hands with private sector experience. One obvious instance: Tony West, Harris' brother-in-law who is on leave from his job as the chief legal officer at Uber is almost certain to get a top role in her administration. And allies of Silicon Valley in D.C. are hopeful Harris' closer geographical and generational ties to tech mean more open lines of communication than existed with Biden. "There's going to be a greater willingness to hire people who worked in the private sector. That doesn't mean there's no room for people on the left," said Caitlin Legacki, who worked as a top aide to Commerce Secretary Gina Raimondo, one of the more moderate figures in the Biden administration's economic policy-making world. "You don't have to sell the White House to corporations, but you should have someone to pick up their phone calls." In 2020, while Biden mostly appointed mainstream, experienced hands to lead roles at agencies and cabinet departments, progressives took many critical behind-the-scenes roles. This led to frequent grumbling, from both Republicans and moderate Democrats, about Biden's administration looking like one assembled by Warren, whom he vanquished in the 2020 primary. Now, as some of those same progressives fight for their jobs, popularity looms as a potentially deciding factor. Khan, for instance, has kept an aggressive schedule appearing with influential progressives like New York Rep. Alexandria Ocasio-Cortez, old hands like Rep. James Clyburn of South Carolina, and swing-state senators like Bob Casey of Pennsylvania and Jacky Rosen of Nevada. (Even still, Legacki predicted Harris would "be more selective about fighting ideological battles" when it came to antitrust.) These same popularity contests, however, may doom Gensler, who has emerged as a unique target of industry ire, and who seems to lack the same popular backing benefiting Khan. And while the Biden administration's anti-monopoly posture has been generally popular with the public -- Kahn and Harris both have linked it to lower housing and health care costs -- its antagonistic relationship with crypto is seen as unlikely to win over many voters. Politically, Harris' approach seems to be working. The economy had been a huge advantage for former President Donald Trump in his matchup against President Joe Biden, but Harris has closed the gap. Forty-three percent of voters said they trusted Trump on the economy in an Associated Press-NORC Center for Public Affairs Research survey last week, compared to 41% for Harris, with 15% saying they trusted both or neither. The FTX collapse in November of 2022 scared off most Democrats from engaging with crypto, which the Biden administration did not exactly consider a critical issue when they took office in 2020. Many top officials in both parties viewed the industry as a sideshow, good for little more than slurp juice jokes as some rushed to return the substantial donations they accepted from FTX Chairman Sam Bankman-Fried and his allies. That left an opportunity for crypto critics like Sen. Elizabeth Warren (D-Mass.) and SEC Chair Gary Gensler. As the Biden White House focused on other topics, the SEC continued bringing dozens of cases against crypto firms for failing to comply with the securities laws enacted in the 1930s to protect investors from financial scams -- laws requiring basic disclosures such as the identities of the people in charge. As the FTX collapse faded from public memory, crypto advocates resumed their quest for new rules, claiming the old securities laws shouldn't apply. In May, the House of Representatives obliged by passing a bill that would diminish the SEC's oversight of the industry. Nevertheless, the legislation passed with bipartisan support -- 71 Democrats joined nearly every Republican in favor -- but it was ignored by the Democratic-controlled Senate. Senate Democrats have sought to advance their own proposals that would reduce the role of the SEC in overseeing digital assets, but those too, have stalled due to GOP opposition. Meanwhile, the influence of the crypto lobby only grew. Crypto super PACs have spent tens of millions of dollars against Democratic candidates across the country, including in several critical Senate races that could determine control of the chamber next year. And it's not just Republicans who are courting crypto donations: Future Forward, the leading super PAC supporting Harris' presidential campaign, began accepting cryptocurrency donations earlier this month. "What's alarming is the capacity of billionaires and the crypto folks to put $40 million in Ohio, maybe put $60 million in Pennsylvania," said Sen. Peter Welch (D-Vt.). "You know, it's just as a reminder how messed up our political system is that folks with that kind of cash have such outsized influence." "Most people don't understand it, but it's powerful, and it's money," the senator added. Earlier this summer, Senate Majority Leader Chuck Schumer (D-N.Y.) and other Democrats joined a "Crypto4Harris" virtual town hall to show support for digital assets. The event featured billionaire entrepreneur Mark Cuban, who has emerged as one of Harris' top corporate go-betweens. Harris has also dispatched her top policy aide, Brian Nelson, to woo crypto industry figures. "There's been a real tangible effort from them to listen to us, hear from us, and reassure us -- without making any hard commitments -- and talk about crypto in a constructive way," a source familiar with the Harris campaign's outreach to the crypto community told HuffPost. Republican presidential nominee Donald Trump has spent substantial time courting the crypto fan base, which skews younger, male and caucasian. He even rolled out his own cryptocurrency business earlier this month. (The former president has had his own evolution on crypto. As recently as 2021, Trump called Bitcoin a "scam" and said cryptocurrencies in general were "potentially a disaster waiting to happen.") Whatever the reason, the tone shift has seemingly affected even some of crypto's top critics. Rep. Maxine Waters (D-Calif.) said this week "crypto is inevitable," while Warren took a non-confrontational tone when asked about Harris's openness to digital assets. "I'm fine with people buying and selling crypto," Warren told HuffPost. "It's very important that crypto follow the same rules as every other part of our financial system, and making sure it's not exploited by drug traffickers, terrorists and countries like Iran." Following the same rules as the rest of the financial system, however, is exactly what crypto does not want to do. More than anything, crypto proponents also want the next president to fire Gensler. Cuban said on social media this week the Harris campaign told him they opposed the administration's current approach to crypto, and he suggested that Gensler would be going away. "CYA Gensler," Cuban wrote. "You leaving is worth a point in GDP growth." Meanwhile, Republicans are skeptical that Harris' embrace of crypto is legitimate and claim that she has little familiarity with the industry. "She's very close to Sen. Elizabeth Warren, and Elizabeth Warren hates digital assets," Sen. Cynthia Lummis (R-Wyo.), a top GOP advocate of the sector, said of Harris. "I am more concerned with what I see, than what I hear."

Harris signals support for crypto, in potential break with Biden

Crypto executives have hoped for a friendlier relationship with Harris, and she is giving them reasons for optimism. Vice President Kamala Harris is signaling support for expansion of the cryptocurrency industry in the United States, attempting to rebuff claims that she would seek a crackdown on the rapidly growing but controversial sector. In a speech in Pittsburgh about the economy on Wednesday, Harris said it was important for the United States to maintain its dominance in blockchain technology, which facilitates trade of cryptocurrencies such as bitcoin. The Harris campaign on Wednesday also released a policy document that said she will would "encourage innovative technologies like AI and digital assets," a reference to cryptocurrencies and similar technologies such as stablecoins. Harris had on Sunday promised donors in New York City a "safer business environment" for digital assets, as well. Harris has not detailed a specific plan for promoting crypto, and her statements have also affirmed the importance of protecting consumers from predatory practices. But her comments were intended in part to reassure investors nervous that the Democratic presidential nominee would maintain what they view as President Joe Biden's hostile approach to the sector, said two outside advisers to the campaign who spoke on the condition of anonymity to describe its tactics. The olive branch comes amid a wave of pressure from donors and crypto groups, who have massively stepped up their spending on politics this year, as well as electoral concerns among Democrats about antagonizing the millions of Americans who have invested in cryptocurrencies. GOP presidential nominee Donald Trump has accused Harris of seeking "the repression of crypto" and being "against crypto," while himself pledging to end "the persecution" of the industry under Biden and Harris. Trump has aggressively courted crypto investors and sought to raise money from its executives, promising to appoint industry-friendly regulators and implausibly suggesting he would seek to pay down the U.S. national debt in part through crypto. Trump was previously a critic of bitcoin, and his reversal reflects how both parties have warmed to the industry as it has poured hundreds of millions of dollars into lobbying efforts. Crypto firms have spent more than $119 million on federal elections and are now the dominant corporate political spenders this year, according to a report in August by Public Citizen, a watchdog group. "Harris is signaling a break from Biden and crypto skeptics without boxing herself into specific policies," said Aaron Klein, an expert in financial technology at the Brookings Institution, a Washington-based think tank. Klein called it "smart campaigning on an issue that divides Democrats and where Trump is trying to make a play." Harris's comments on the industry follow a fierce push by its allies to get the Democratic presidential nominee to constrain the crypto regulation of Biden's appointees. Crypto executives have focused their ire on Biden-appointed Securities and Exchange Commission Chair Gary Gensler, who has warned that the industry's history of "failures, frauds, and bankruptcies" indicate many players don't play by the rules. In 2023, the agency brought 46 enforcement actions over digital assets, a 53 percent increase from the previous year, according to an analysis by Cornerstone Research. Harris has thus far declined to say whether she would keep Gensler in place, but allies have seen cause for optimism for a break with Biden. Mark Cuban, the billionaire who has become a key surrogate for the Harris campaign in the business community, has said Harris's campaign was listening closely to crypto investors and wrote in an email Wednesday that her latest remarks were in "the right direction." "She talked about blockchain, which answers a lot of questions about crypto," Cuban told reporters in Pittsburgh on Wednesday. Cuban also told reporters on a Harris campaign press call: "She wants us to continue to be a technological leader in AI and crypto technologies and more. And I think that is a very significant positive." But Harris faces countervailing pressure from some Democratic economists who view cryptocurrencies as ripe for greater regulatory scrutiny and providing little upside. "This is just gambling. ... I don't think we need to make it easier to do illegal transactions -- blackmailing, drug dealing, whatever," said Dean Baker, an economist at the Center for Economic and Policy Research, a left-leaning group. Baker said while he understands Harris "doesn't want to alienate the crypto folks ... the government should not be encouraging speculation in this stuff." Meanwhile, those hoping for Harris to do more to signal her support for crypto may be disappointed. "The statement is pablum, but shows her campaign staff are taking meetings with the industry. A real signal the vice president could send to crypto would be to say she looks forward to appointing a new SEC chair during her first term," said Niki Christoff, a tech consultant with crypto clients. Harris has narrowed Trump's lead on the economy in polls, and her speech in Pittsburgh was cast as establishing her support for capitalism and close ties with business leaders. Whether that will prove persuasive to the crypto industry, however, probably won't be clear until after the election. Tech lobbyists are hopeful that Harris's extensive ties to Silicon Valley will result in improved relations between the tech industry and Democrats, after years of escalating tensions. "Biden's crypto policy has been driven by Gensler and [Democratic Sen. Elizabeth] Warren, who have rejected setting clear rules because that would validate that crypto is here to stay," said Adam Kovacevich, the CEO of the liberal tech industry trade group Chamber of Progress. "This is the clearest signal yet that Harris wants to reject that strategy and instead regulate crypto to protect consumers."

Harris woos crypto voters with 40 days left in White House race

Vice President Kamala Harris has recently begun positioning herself as a pro-crypto leader, sparking excitement among cryptocurrency enthusiasts who have long awaited her stance on the topic. On Wednesday, during a speech at The Economic Club of Pittsburgh, Harris emphasized that blockchain, AI, and other emerging technologies would play a central role in her administration if elected in November. Two days prior, she explained her support for AI and crypto at a $27 million fundraiser in New York. The comments are Harris' first known public comments on blockchain or cryptocurrency. This sudden pivot to crypto comes with just 40 days remaining until the U.S. presidential election, a time when the race is tightening and every potential voting bloc could be crucial. Harris's back-to-back comments on cryptocurrency within a week have raised questions about the timing. Alexander Blume, CEO of Two Prime, an SEC-regulated Registered Investment Advisor specializing in digital asset derivatives and a former technology advisor to the Bill & Melinda Gates Foundation, suggests her sudden focus on crypto could be strategic. According to Blume, crypto-focused voters might hold the potential to sway the outcome of the election. "With over 50 million US crypto owners, many of them passionate, single-issue voters, there is a chance their vote could be decisive in swing states like Michigan, Wisconsin, and North Carolina," he told Quartz in an email. After Harris's nomination for the presidential race, her camp seemed intent on currying favor with crypto enthusiasts ahead of this November's election. A group called Crypto4Harris held its first virtual gathering in August to support her campaign and push her to end the Biden administration's crackdown on the cryptocurrency industry. Similarly, a group of leading crypto executives participated in a conference call the same month with White House officials and an adviser to Harris, sharing their concerns about current and future crypto regulations. The Harris campaign's recent efforts aimed to position the Vice President as equally serious about cryptocurrency -- much like Donald Trump, the Republican presidential nominee, who has branded himself a "crypto candidate" this election cycle. Trump has even accepted donations in Bitcoin, Ether, Dogecoin, Solana, and other cryptocurrencies for the campaign. He participated in a Bitcoin conference in July, where he advocated for the establishment of a national Bitcoin reserve. Blume noted that FairShake PAC -- one of the best-funded in the country -- has been aggressively backing pro-crypto candidates this election cycle, which has boosted Trump's support within the crypto community. As Election Day approaches, Harris recognizes the need to shift momentum in her favor or risk losing critical ground, he added. Harris's position on cryptocurrency regulation and policy remains unclear, as does her depth of understanding on the technology. So far, her statements have been broad and vague, offering little insight into her approach to crypto. Blume suggests that neither presidential candidate appears to have a deep technical understanding of cryptocurrency. "In Trump's case, however, he's been more active in courting crypto voters and I think he at least understands the main issues that matter most to this industry. Harris doesn't appear to have that same understanding of what policies are most important," he said. Moe Vela, a senior advisor at Unicoin and former adviser to Joe Biden during his vice presidency, is optimistic about her understanding of crypto. Given Harris' extensive history working with Silicon Valley and tech leaders as a U.S. senator representing California, Vela is hopeful that Harris understands crypto's enduring presence and its potential as a powerful economic force. "While Mr. Trump continues his political bluster on crypto, she brought in two crypto experts as senior advisors in David Plouffe and Gene Sperling," he told Quartz in an email. Yet even as crypto emerges as a surprise campaign issue, questions loom large over the future of cryptocurrency regulation. Despite both candidates' overtures to crypto enthusiasts, neither has outlined a clear policy agenda, leaving the industry's fate uncertain regardless of who clinches the White House in November.

Kamala Harris Strengthens Crypto Stance: The US Will 'Remain Dominant In AI And Quantum Computing, Blockchain, And Other Emerging Technologies'

Democratic presidential nominee Kamala Harris reaffirmed her support for emerging technologies like blockchain and artificial intelligence, days after mentioning cryptocurrencies for the first time on the campaign trail. What happened: While outlining her economic proposals during a speech at The Economic Club of Pittsburgh, the vice president said, " I will recommit the nation to global leadership in the sectors that will define the next century. We will invest in biomanufacturing and aerospace, remain dominant in AI and quantum computing, blockchain, and other emerging technologies." The support aligned with Harris' goals of boosting America's industrial might as it was tied to the nation's overall economic strength. See Also: Elon Musk Dons His MAGA Hat To Meet Pro-Bitcoin President Javier Milei: Duo Discuss Argentina's Journey To Normalcy Why It Matters: The latest mention came just a few days after Harris formally referenced cryptocurrencies for the first time as part of her campaign for the high-stakes November election. The presidential hopeful promised to protect the interests of people involved in "innovative technologies like AI and digital assets." The ongoing election season has witnessed a considerable increase in emphasis on cryptocurrencies and blockchains, owing largely to former President Donald Trump's promise to implement various cryptocurrency-friendly policies if elected. But with Harris finally putting her cards on the table, the coming days could see a more aggressive bid by the two leaders to court the cryptocurrency demographic. A report by CNBC indicated that Bitcoin BTC/USD had the potential to hit six figures irrespective of who emerged victorious in the November election. Price Action: At the time of writing, Bitcoin was exchanging hands at $62,887.86, down 2.13% in the last 24 hours, according to data from Benzinga Pro. Image via Shutterstock Did You Know? Congress Is Making Huge Investments. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool Market News and Data brought to you by Benzinga APIs

Kamala Harris Pledges US Dominance in Blockchain & AI Technology

Congressman Ro Khanna backs Harris' pro-crypto stance, calling Bitcoin the "modern version of gold" for young investors. Vice President of the United States Kamala Harris has vowed to help the U.S become the world's leading country in the area of blockchain and artificial intelligence. In a speech at The Economic Club of Pittsburgh, Harris stressed that the United States needs to continue to lead in the technologies of the future. She mentioned blockchain, AI, quantum tech and other such technologies as domains where the US needs to remain on top. Kamala Harris Vows to Lead in Emerging Technologies In her speech, Harris focused on maintaining America's leadership in some of the most promising sectors such as blockchain. She claimed that these innovations are necessary for the continued competitiveness of the country and especially when it comes to competing with countries such as China. Kamala Harris positioned the future of American economic leadership in AI, blockchain, and quantum computing and said that her administration would lead in these areas. Kamala Harris elaborated her vision of 'opportunity economy', where the America will support innovativeness but remain protective of consumers. She pointed out that her government would introduce a favorable environment for doing business, clear rules to develop digital assets and other possible technologies. Mark Cuban Endorses Harris, Shows Interest in SEC Billionaire entrepreneur Mark Cuban has publicly endorsed Kamala Harris, expressing support for her stance on innovative technologies, including blockchain and digital assets. Cuban also pointed out that Harris showed her disapproval towards 'regulation through litigation and further mentioned that her administration could possibly fire the current Chairman of SEC, Gary Gensler. He said that such a decision could add considerably to economic expansion, dubbing it a potential 'point in GDP growth.' In an interview, Cuban went further and said that if he were to be offered the position in a Harris administration, he would be interested in being the head of the SEC. This endorsement and the interest in leadership are an indication of Cuban's agreement with Harris's views on technology regulation and the role that technology should play in the modern world. Congressman Ro Khanna Applauds Harris' Approach The Vice President's statements also attracted support from other legislators, with Representative Ro Khanna welcoming Harris' stance on newest technologies like Artificial Intelligence and Digital Assets. Khanna stated that going against Bitcoin and cryptocurrencies would be like going against technological advancements such as smartphones and laptops. He stressed the importance of the right approach to regulation that will allow the development of digital assets without harming customers, as he pointed out that Bitcoin is a new kind of gold for the youth. Khanna's comments reflect the new reality in the political field that digital assets are not a fad and that embracing innovation through regulation will help the United States maintain its position as a global leader in the global economy. Kamala Harris' speech coincided with the release of her 80-page economic plan, which stresses the importance of emerging technologies. Her vision includes fostering growth in industries like AI and blockchain while maintaining strong regulatory frameworks to protect consumers and investors

Kamala Harris Vows to Keep US 'Dominant in Blockchain' - Decrypt

Vice President Kamala Harris said Wednesday during a speech at The Economic Club of Pittsburgh that blockchain, AI, and other emerging technologies will be a key part of her administration if elected president in November. "We will invest in biomanufacturing and aerospace, remain dominant in AI and quantum computing, blockchain and other emerging technologies, [and] expand our lead in clean energy innovation and manufacturing," she said, "so the next generation of breakthroughs -- from advanced batteries to geothermal to advanced nuclear -- are not just invented, but built here in America by American workers." This is the first known instance that Harris has publicly commented on blockchain or cryptocurrency during her political career, though Bloomberg reported that she courted donors at a fundraising event last weekend by mentioning plans to encourage technologies including "digital assets." During Wednesday's speech, Harris also emphasized the importance of "leading the world in the industries of the future and making sure America, not China, wins the competition for the 21st century."