Harris’s Campaign Advisors Advocate for ‘Responsible Business’ in Outreach to Crypto Industry

Advisors to Vice President Kamala Harris’s presidential campaign have initiated contact with key figures in the cryptocurrency industry.

The outreach aims to build relationships that could shape future regulatory frameworks, the Financial Times reported, citing sources familiar with the matter.

Recent outreach efforts have included notable industry players such as crypto exchange Coinbase, stablecoin company Circle, and blockchain payments firm Ripple Labs.

The move signals a potential shift in the Democratic approach to the tech and crypto sectors, traditionally considered more liberal but recently strained by the Biden administration’s regulatory stance.

Democratic Party Supports “Responsible Business”

Per the report, an insider revealed that Harris’s campaign intends to convey a message that the Democratic Party supports “pro-business, responsible business” practices.

Harris’s ascension as the Democratic presidential candidate presents an opportunity to mend relations with the tech industry, which has faced increasing scrutiny under the current administration.

In a recent post on X, Ripple CEO Brad Garlinghouse urged Harris to distance herself from critics like Rep. Brad Sherman (D-Calif.), a vocal opponent of cryptocurrency.

He emphasized that Democrats risk losing voter support by opposing crypto, while Republicans gain traction by promoting innovation within the U.S.

Jumping to conclusions and assumptions about candidates purely based on political affiliation without any policy proposals is holding the crypto industry back (similar to how tribalism has for years).

VP Harris is no stranger to Silicon Valley & has an incredible opportunity to… https://t.co/2kmKDZZXJe

— Brad Garlinghouse (@bgarlinghouse) July 24, 2024

Garlinghouse further noted that Harris, familiar with Silicon Valley’s dynamics, has a chance to reset the narrative on crypto regulation.

He expressed cautious optimism, warning that adopting a hardline stance similar to Senator Elizabeth Warren’s could be politically damaging, especially given the controversy surrounding SEC Chairman Gary Gensler.

Gensler has faced criticism, even from Democratic supporters like billionaire Mark Cuban, who recently suggested President Biden should replace him.

Cuban, a prominent crypto advocate, confirmed that Harris’s advisors had approached him with multiple inquiries about cryptocurrency.

He interpreted this as a positive sign, indicating a potential openness to the sector within Harris’s campaign.

Meanwhile, former President Donald Trump has also been engaging with the crypto community, reversing his previous skepticism.

7 U.S. States Challenge SEC’s Crypto Regulations

As reported, a coalition of seven U.S. states has come together to challenge the SEC’s regulation of cryptocurrency.

Led by Iowa Attorney General Brenna Bird, the states have filed an amicus brief arguing that the SEC’s attempt to regulate cryptocurrencies constitutes a “power grab” that would stifle innovation, harm the crypto industry, and exceed the agency’s authority.

The coalition includes Arkansas, Indiana, Kansas, Montana, Nebraska, with Oklahoma becoming the latest state to join.

Earlier this year, SEC Commissioner Hester Peirce said that the regulatory agency is currently operating in an “enforcement-only mode” when it comes to the regulation of cryptocurrencies.

Peirce, known for her crypto-friendly stance among the SEC’s five commissioners, acknowledged the burden placed on industry participants who constantly worry about avoiding legal disputes.

“If we had clearer rules, you could focus on building,” she said.

Last week, the SEC closed its three-year investigation into Hiro Systems.

The agency’s conclusion of the investigation comes just a day after it closed a separate case involving stablecoin issuer Paxos, marking another instance where the regulatory body has opted not to pursue enforcement actions against crypto entities.