What Crypto Regulations Could Look Like Under a Harris Presidency
Written by
Yaël Bizouati-Kennedy
Edited by
Cory Dudak
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While Vice President and Democratic presidential nominee Kamala Harris has been much less vocal about the crypto industry than her opponent Donald Trump, things are picking up steam as the election nears.
The fact that Trump has been very outspoken about his stance on crypto has somewhat pushed Democrats to put the issue on the agenda as well: Enter Crypto4Harris, a “grassroots network of crypto advocates” that held an event on August 14, with speakers including Adam Schiff, (D-Calif.), Crypto Council for Innovation CEO Sheila Warren, billionaire Mark Cuban and Anthony Scaramucci, according to a post on X. The keynote speaker was Senator Kirsten Gillibrand (D-N.Y.).
During the event, Senate Majority Leader Chuck Schumer (D-N.Y.) shared “his full support for the industry,” and said “the U.S. Senate will pass a crypto bill before the end of the year,” according to a post on X (formerly Twitter).
Further underscoring Harris’s warming up to crypto, Coinbase Chief Policy Officer, Faryar Shirzad said that he “took in a number of discussions with the Harris team.”
“Very much appreciate their constructive approach and their focus on advancing innovation, jobs and consumer protection in the U.S.,” Shirzad said in an August 21 X (post. “The dialogue had been an important first step, and Brian Nelson’s statement is an encouraging second step in the right direction.”
Nelson, a senior campaign adviser for policy to the campaign, told Bloomberg on August 21 that Harris is “going to support policies that ensure that emerging technologies and that sort of industry can continue to grow,” adding that the team is also looking at implementing protections for the industry
“Obviously, they’ve expressed that one of the things that they need are stable rules, rules of the road,” Nelson told Bloomberg.
Yet not everyone is sold on the extent to which a Harris win could help crypto and which regulations she could put in place.
Here are some crypto regulations Harris might consider if she were to win in November, according to experts.
Regulation “By Enforcement” and Higher Taxes
Several experts noted that while the crypto industry in the U.S. lacks legal certainty, Harris has not provided any crypto-related policy proposals yet.
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According to Patrick Gruhn, former Europe head of FTX and founder of Perpetuals.com, this could likely mean that under her administration the “regulation by enforcement” approach of the last four years might continue.
Given Harris’s most recent tax proposal, additional crypto-related rules might also be on the horizon to more effectively tax crypto holders, added Gruhn. “That would all not be helpful for the U.S. crypto industry,” he said.
Clearer Rules and Definitions
Alexander Blume, CEO, Two Prime, argued that it is fair to expect that a Harris administration would be less supportive of crypto than a Trump presidency, but probably not as hostile as the current Biden administration.
In turn, a key positive development he expects from a Harris presidency is that she would support clearer rules being created to define what is and isn’t a security in relation to cryptocurrencies.
“This will provide greater clarity for companies to operate in the U.S.,” Blume added.
A Reset
Harris’s suggestions of a reset with crypto a while back would certainly be a welcome development given the difficulties that the industry has faced in the United States over the last couple of years, according to some experts.
“The industry would unanimously support a new approach from federal agencies if the features included clear and fair regulation so that crypto builders and users can feel comfortable operating in the United States,” said Brian D. Evans, CEO and founder of BDE Ventures.
On that note, on July 26, several House Democrats wrote a letter to the Democratic National Committee and Harris calling for them to take a friendlier crypto stance and consider several steps.
They specifically called on the campaign including “pro-digital asset language in the party’s platform”; select a pro-innovation Securities and Exchange Commission chair; engage with industry experts, according to the letter posted on X.
Regulations on Bitcoin Mining
Blume said he also anticipated that the Harris administration will support a green energy tax on bitcoin mining firms.
“The U.S. mining industry is already facing a lot of headwinds that miners in other countries do not have to contend with, and this will just add another layer of cost and difficulty that will put us further behind other regions,” he said.
Stricter Compliance Regulations for Exchanges
In the wake of the collapse of several exchanges- namely FTX, Celsius and Voyager, some experts believe that a Harris administration could implement more positive regulations in regard to stricter compliance for American crypto exchanges. having seen what has happened to
“It would be good for the cryptocurrency industry if exchanges had to comply with more certain liquidity and reserve requirements similar to banks,” said Matthew Webb, co-founder of wevr.ai.
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