Kamala Harris seeks to ‘reset’ crypto relations: What’s behind the move?

• Kamala Harris’s team reportedly contacted Coinbase, Circle, and Ripple Labs. 
• Democratic politicians urged the DNC to choose a pro-crypto SEC chair and VP nominee. 

US Vice President Kamala Harris is reportedly seeking to make amends with the crypto sector.

The move comes after she snubbed the Bitcoin 2024 conference invite and sustained industry criticism of the Biden administration.  

According to the Financial Times (FT) report, the Harris advisers have contacted Coinbase, Circle, and Ripple Labs to ‘reset’ relations. 

‘Kamala Harris’s advisers have approached top crypto companies to “reset” relations between her Democratic party and the sector.’

Harris: Genuine reset or seeking campaign funding?

Harris’s overtures and reported amends come amid growing support from the sector for her rival, Donald Trump.

During Saturday’s Bitcoin 2024 conference address, Trump reinforced his pro-crypto stance and vowed to make BTC a US national reserve asset. 

However, a section of the crypto community was skeptical of her U-turn, claiming that she might be after funding. 

The crypto sector has become a crucial source of campaigns as it rallies to elect pro-crypto candidates. 

To this end, according to recent Federal Election Commission data, Fairshake, a pro-crypto super PAC, has raised over $200 million, slightly outpacing most traditional backers. Coinbase and a16z are among the largest donors to Fairshake. 

Interestingly, a16z, founded by venture capitalists Marc Andreessen and Ben Horowitz, has backed some Democratic candidates in the past, per the FT report. The firm is also amongst the largest investors in the crypto industry.

Democratic party crypto stance under pressure

However, the VCs recently criticized the Biden administration and SEC’s enforcement actions in the crypto space. 

‘They have just fought us every step of the way and using very nefarious means.’ 

They added that the administration was ‘nuking the industry’ and expressed their support for Trump. 

Despite the perception, Harris was not after campaign funding, per the FT report, quoting the VP advisers. Instead, the advisers claimed that,

‘It’s an opportunity to reset relations with the tech industry, which had felt targeted by the Biden administration, particularly on antitrust matters.’ 

The campaign team added that they want to convey the message that Democrats are pro-business. 

Indeed, the message was reinforced last Friday after Democratic politicians wrote to the Democratic National Committee (DNC).

Based on poll data, the group urged the DNC to nominate a pro-crypto VP and SEC chair and change its policy toward the sector.

Data shows that digital assets are being adopted at higher rates among Gen Z, Black and Latino Americans, and immigrant communities—key constituencies of the Democratic party—compared to traditional financial products.’

However, as of press time, the top Democratic VP nominee contenders per Polymarket, Josh Shapiro and Mark Kelly, have no strong crypto stance.

Source: Polymarket

A likely change in the Democratic party’s stance could suggest that crypto might become a bipartisan issue worth addressing regardless of who wins the November election.