Vice President Kamala Harris is facing mounting pressure to clarify her position on crypto as the 2024 election approaches or risk “ceding” industry support to former President Donald Trump, according to a new think tank report.
The report, published by the Official Monetary and Financial Institutions Forum (OMFIF), emphasized that Harris must engage with the crypto community or risk losing significant ground to the Republican party.
The report comes amid increasing calls for Harris to move away from the current administration’s cautious, often hostile stance toward digital assets. For her part, Harris has reportedly stepped up his efforts to engage with the industry in recent days.
Fox News’ Eleanor Terret revealed on August 2 that Congressman Ro Khanna will host a major meeting on August 5, bringing together crypto industry leaders, Democratic politicians and Harris campaign representatives to plan a “fresh start” related to the sector.
However, many believe these efforts may come too late to sway voters, while others are skeptical of Harris’ rumors and believe Democrats should take decisive action rather than engage in discussions to change public perception.
Trump’s open support
The Republican Party, under Trump’s influence, has actively courted the crypto sector and adopted an openly pro-crypto stance. Trump’s promises of favorable regulation, including the firing of SEC Chairman Gary Gensler and the creation of a U.S. Bitcoin reserve, have resonated in the community.
By accepting crypto donations and defending the industry, Trump has positioned himself as a leading advocate, appealing to crypto enthusiasts who feel neglected by current policies. Meanwhile, Republican lawmakers are pushing for government adoption of Bitcoin and the right to self-determination.
In contrast, the Democratic party has struggled to win over the crypto community. The US has lagged behind in providing clear regulatory frameworks for crypto companies, unlike regions such as the EU and Singapore.
Legislative efforts such as the Financial Innovation and Technology for the 21st Century Act (FIT21) have faced opposition from key Democrats, including Senator Elizabeth Warren.
Meanwhile, the SEC’s enforcement actions, especially controversial lawsuits, have increased regulatory uncertainty, while President Joe Biden’s veto of a bill aimed at undoing the SEC’s guidance that would limit banks’ ability to engage in digital holding assets more difficult has further reinforced the government’s negative attitude.
Reshaping the story
According to OMFIF, Harris has the opportunity to reshape the narrative by supporting existing legislative efforts and promoting regulatory clarity. The think tank said advocating for the FIT21 bills and the Stablecoins Act at the upcoming Democratic National Convention could mark a significant shift.
It further suggested that she could attract industry support and donations by adopting a more conciliatory approach to the crypto industry. OMFIF believes such moves could influence voters in key battleground states.
According to the think tank, the crypto industry’s influence on the political landscape is growing and enacting crypto policy offers an opportunity to attract a new voter base and tap into the industry’s economic potential. It further stated that good regulation, which balances risks and opportunities, is critical to the U.S. economy and should transcend partisan politics.