Is Voting For Kamala Really a Vote Against Crypto?

To the despair of MAGA hat-wearing Republicans, Kamala Harris is solidifying her lead against former President Donald Trump.

Polymarket polls now have Harris at a 52% lead against Trump's 46%, while crypto betting site Predictit is selling Harris "yes" votes for 58c compared to Trump's 44c.

When Harris first overtook Trump, her odds were priced at slightly over 50c while Trump's remained at about 50c (yes, that's degen maths for you).

But now that the crypto industry has had some time to digest that Harris might actually be the next President of the United States (POTUS), has it been able to reconcile this outcome? Well, not quite.

When we last spoke about Harris, we brought to your attention her new running mate, Tim Walz. "Little is known about Harris's crypto ambitions (or lack thereof) and even less is known about Walz. Yet, the industry is fearing the worst due to contradicting information about Walz online," we said last week.

And largely, not much has changed in terms of new information. Walz is being regarded as even more left than Harris and neither have shed any light on their crypto opinions.

However, that hasn't stopped the crypto industry from intensifying its fear of America potentially electing its first female President.

Vote Against US Crypto

Cardano founder, Charles Hoskinson, who was very fearful of another round of Joe Biden, is predictably sceptical about Harris too.

"As I have repeatedly said, the Biden-Harris Whitehouse has a war on crypto," he said. "There appears to be no reset. In fact, it appears to be even worse now. A vote for Harris is a vote against the American Crypto industry."

As I have repeatedly said, the Biden-Harris Whitehouse has a war on crypto. There appears to be no reset. In fact, it appears to be even worse now. A vote for Harris is a vote against the American Crypto industry https://t.co/yRPgfx5gcK
— Charles Hoskinson (@IOHK_Charles) August 9, 2024

His comment came in response to Tyler Winklevoss who expressed doubt about Harris's crypto "reset."

"The Fed confirmed that Operation Choke Point 2.0 remains in full swing, provided valuable insight into how it works, and verified that the Harris crypto "reset" is a scam," he said.

"The Fed revealed all of this in a 13-page enforcement action it issued this morning against crypto-friendly bank."

Today, the Fed confirmed that Operation Choke Point 2.0 remains in full swing, provided valuable insight into how it works, and verified that the Harris crypto "reset" is a scam. The Fed revealed all of this in a 13-page enforcement action it issued this morning against… pic.twitter.com/zhLRRWAH0E
— Tyler Winklevoss (@tyler) August 9, 2024

The "reset" Winklevoss was referring to was proposed by Harris's team in response to the criticism Biden received for his harsh stance on crypto.

With her advisors approaching industry leaders including Coinbase, Ripple, and Circle, Team Harris pledged a "reset" with the industry.

Anti-Crypto Advisory

As Harris isn't offering up any insight into her crypto stance, the best measure we have of her intentions is through her team. We've already done our due diligence on Walz (and found nothing) but her choice of economic advisors could signal her direction.

According to reports, Harris is working with Brian Deese and Bharat Ramamurti, who served as economic advisors of the Biden administration. Deese took on the role of director of the national Economic Ciouncil while Ramamutri was the council's deputy director. However, this isn't exactly good news for the crypto industry.

Both Deese and Ramamutri heavily opposed the Clarity for Payment Stablecoins Act of 2023 on the grounds that it was too permissive for issuers.

in april, @rkuttnerwrites confirmed leo’s reporting, saying that it was specifically deese and ramamurti who intervened to kill the stablecoin legislation (https://t.co/anTydcT2h2)

keep in mind that this bill would have legalized but *heavily regulated* stablecoins — both with… pic.twitter.com/4eFOGSyPfI
— Alex Thorn (@intangiblecoins) August 13, 2024

Additionally, Harris has turned to former senior Treasury Department, Brian Nelson, who scrutinized the role of digital assets in terrorism and illicit finance.

The Room Where It Happens

Following US politics right now is like having tunnel vision until November. Sometimes we have to remind ourselves that Biden is still the President and no matter what happens in November, there is still an ongoing crypto vs US battle under the Biden administration, but it's not all bleak.

Last week, crypto industry leaders met with top White House officials for a second time in a month including U.S. Deputy Secretary of the Treasury Wally Adeyemo, National Economic Council Director Lael Brainard, White House deputy chief of staff Bruce Reed and director of legislative affairs for Vice President Kamala Harris Kristine Lucius. Rep. Ro Khanna, D-Calif.

Joshua Schenk, policy advisor at the White House, venture capitalist Ron Conway, Andreessen Horowitz partner Chris Dixon, Electric Capital Co-Founder Avichal Garg, and Kraken CEO David Ripley were also present.

Points discussed included regulation and policy outcomes, leading on from last month's meeting. "The big difference was who attended, which you had Wally and Lael, which are really the most senior level representatives overseeing crypto policy in the Biden administration in terms of non-regulators," a source familiar with the matter told The Block.

"So having Lael and Wally there really changed the dialogue to have people who are actually responsible for setting policy."

Coinbase's Chief Legal Officer Paul Grewal said that conversations to progress the current state of affairs are encouraging. "Any conversation on moving beyond this Administration's unproductive record on crypto is positive," Grewal said.

"It isn't too late but time is running short. The White House should publicly back the Senate's efforts to pass a bipartisan market structure bill much as the House has done and sign it into law."

Grassroots organization Crypto4Harris is also holding its event today in which crypto industry leaders such as Crypto Council for Innovation CEO Sheila Warren and billionaire Mark Cuban will speak.

The group describes itself as "a grassroots network of crypto advocates organizing, fundraising, and developing a nuanced crypto-policy approach for the Harris For President campaign."

👏 that's a wrap for today 👏

Tomorrow is the big event 👀 Have you invited all your frens to join us as we engage @KamalaHQ in pursuit of a reset on crypto policy?

You need more reasons?!? Well, okay. So tomorrow we'll be announcing our Keynote Speakers (that's right, we're…
— Crypto4Harris (@Crypto4Harris) August 14, 2024

"Crypto is building a movement to support Kamala Harris," Crypto4Harris said on X. "A group of industry leaders, policy experts, and everyday crypto-enthusiasts are organizing to back Harris while pushing for a nuanced policy stance that positions America as a leader in digital assets."

With mixed signals coming from the Harris camp, the crypto industry is correct in being apprehensive and cautious. Trump might be crypto's President of choice but it doesn't seem like he's America's. In any case, the crypto industry has weathered through worse storms than politics.

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