3 Ways Harris Has Changed The Democrats' Crypto Strategy After Biden

Between Donald Trump and Kamala Harris, it’s almost the antithesis on the issue of cryptocurrencies. On one side, Trump dreams of making the United States the “global crypto capital,” while Harris adopts a more cautious stance, although she is more favorable to the industry than Joe Biden. She promises to improve the regulatory framework for American companies in the sector, while remaining wary of issues such as taxation, Bitcoin mining, and self-custody wallets.  

Crypto, a hot topic for 2024 in the USA

Kamala Harris, to whom Ripple had just given a substantial crypto donation, positions herself as an alternative to Biden’s harsh approach on crypto market regulation. Since September, she has intensified her efforts to integrate blockchain among the emerging sectors where she wants the United States to maintain its lead. 

Behind-the-scenes discussions reveal a potentially more constructive approach than that of her predecessor. However, Harris is not ready to yield on all fronts:

• She remains “very hostile” to the industry regarding taxation, considering reversing the tax cuts of the Trump era, which could increase costs for crypto holders;
• Unlike Trump, who actively supports Bitcoin mining in the United States, Harris does not commit to promoting this activity;
• The self-custody of crypto assets also does not seem to be a priority for the Democratic candidate.

As highlighted by Alex Thorn, a researcher at Galaxy, “although Trump is undoubtedly more favorable to the sector, we remain optimistic that Harris could be more open than Biden“.

TRIGGER ALERT 🚨

i’m releasing our policy scorecard on the positions of biden, harris, and trump on major bitcoin & crypto issues

bottom line: while trump is undoubtedly more favorable for the industry, we’re optimistic that harris could be more supportive than biden has been pic.twitter.com/qNKeLtppcS

— Alex Thorn (@intangiblecoins) October 14, 2024

Regulation: a relaxation in sight?

The regulatory climate could soften with Harris, particularly since the departure of Gurbir Grewal, former head of the SEC’s enforcement division, in early October. This resignation could signal a shift in the current policy. 

Nonetheless, Harris and Trump agree on one point: they support financial sanctions against foreign adversaries using crypto. This limits support prospects for decentralized protocols, which escape anti-money laundering and customer identification rules.

For Trump, the vision is clear: he wants to “protect the right to self-manage wallets“, offering cryptocurrency holders the freedom to manage their BTC without intermediaries. Harris, on the other hand, remains cautious, keeping in line with Biden’s stance.

Finally, it should not be forgotten that three weeks ago, Harris declared support for emerging digital technologies like AI and cryptos, showing that she is not entirely hostile to the sector.