Kamala Harris’ Crypto Regulation Plans Spark Criticism, But Also Optimism

Seeking to shore up support among Black voters, Democratic presidential candidate Kamala Harris’ campaign released an outreach package this week, which included a promise to regulate cryptocurrencies to protect Black men who invest in digital assets.

It’s the most concrete statement yet from the current vice president, whose truncated campaign – since taking over from Joe Biden in July – has placed far less emphasis on cryptography than that of his Republican rival, former President Donald Trump.

The Harris campaign’s decision this week drew mixed reactions. While some crypto investors and industry members welcomed Harris’ more specific language on crypto regulation, others criticized the framework as being specifically aimed at Black men.

“It was late; a lot of people were waiting for an announcement of support from Kamala Harris for the crypto community and investors,” said Dr. Ali Emdad, director of the Center for the Study of Blockchain and Financial Technology at Morgan State University. Decrypt.

“Research shows that more than a quarter of Black Americans own cryptocurrency, compared to about 15% of white people, so it is more accepted,” Dr. Emdad continued. “People were waiting, and it was, I think, a little late.” …but regardless, it was necessary for this announcement to be made.

Regulatory clarity can foster innovation and help Black communities become leaders in emerging technologies, Dr. Emdad said, while adding that it is important for community leaders to actively participate in policy development. to ensure it meets their specific needs.

“Some will be skeptical due to a historical distrust of financial systems, but others will welcome this as a step towards broader economic empowerment,” he added. “It’s like any major proposal: there will be skepticism, open support and demands for further action.”

But not everyone is convinced. Some in the crypto industry viewed the timing of Harris’ announcement as purely political, especially as the initial buzz around her campaign died down as Election Day approached.

A ABCAn Ipsos poll of likely voters Wednesday gave Harris a 51 percent chance of winning, compared to Trump’s 48 percent, a narrower chance than before. Meanwhile, crypto bettors on Polymarket currently give former Trump a 60% chance of victory, compared to around 40% for Harris.

“I would have believed it two years ago, not in an election year,” said Tony Bravado, co-founder and chief marketing officer of NFTCLT. Decrypt.

“When I hear phrases like ‘support black men,’ it sounds like complacency,” he continued. “Are they really focusing on the entire black community, or are they just trying to convince a specific group of black men to get into crypto? To me this seems a bit disconnected.

Bravado and his partner, Shana Douglass, travel across the country and host events at schools and universities, including historically black Morgan State University (MSU) and the University of Southern California (USC ). Their events aim to teach Black Americans about blockchain, cryptography, and other technologies.

Bravado and other critics derided Harris’ crypto statement as desperate and pandering, and he further expressed concern that singling out black men would place an unnecessary burden on a group that already struggles to acquire financing and financial opportunities.

“We’re not getting enough support as things stand, and now we feel like there’s even more pressure,” he said. “There are so many young people, women and other minorities who are also trying to break through, but we don’t talk about it.”

Douglass, his NFTCLT co-founder, expressed concern that Harris’ language could deepen divisions within the black community, particularly between men and women.

“It reinforces a gender divide that is often used politically in America to weaken the strength of the black community,” Douglass said. “I think this rhetoric only deepens the divide between Black men and women, which prevents us from coming together to mobilize in meaningful ways – which is what this space is for.”

Bravado and Douglass agreed that a clear and neutral regulatory framework would be far more useful and effective than targeting a specific group in a political agenda.

“I’m not sure traditional lobbying is helpful in this case because most of these efforts come from the big crypto companies,” Douglass said. “If small cryptocurrencies and business owners want to succeed in this area, I don’t think they will find that support from the federal government.”

Since the release of the agenda, the Harris campaign has clarified that all of the Agenda’s programs and initiatives for black men – including fully forgivable loans for entrepreneurs and nationwide legalization of recreational marijuana – are intended to benefit all Americans and will not be limited. by race.

“This specific focus recognizes the unique challenges and opportunities Black men face in the digital economy and builds on its broader commitment to economic equity, ensuring no one is left behind,” author and professor at Penn State Dickinson Law, Tonya Evans, says Decrypt. “While the focus on black men may seem targeted, it is part of a broader agenda to uplift all marginalized communities. »

Evans disagrees with the notion that the Harris campaign is seeking support from black male voters, but instead believes it is based on genuine efforts to engage, listen and respond to the needs of an electorate diversified.

“His approach shows a determination to earn the trust and support of each group by addressing their specific economic realities and opportunities in the Web3 economy,” she said. “Additionally, his broader policies support all Americans while ensuring that the most vulnerable and underrepresented communities directly benefit from his initiatives. »

Since announcing his re-election bid, Harris’ opponent Trump has made several overtures to the crypto faithful, including appearing at the 2024 Bitcoin conference and launching several NFT drops. Most recently, Trump launched a DeFi project called World Liberty Financial.

“Trump initiatives, such as World Liberty Financial, raise concerns about centralized control and favoritism, while Harris seeks to establish fair regulations that protect small investors and empower communities,” Evans said.

Trump has repeatedly said that a loss in November would be bad for crypto and the industry’s builders. Investors appear to agree, with the price of Bitcoin and other assets closely tracking its movements in the polls in what some analysts have called a “Trump trade.”

“If we don’t win the election, these people who are under investigation and who are currently free as a bird,” Trump said, “and the people who have not been monitored in the world of cryptography, will live in good blood, because it will start the day after the elections if they win.

While Trump has certainly been much more outspoken about his crypto plans, Evans is confident that Harris’ approach is overall the right one for the future of the industry.

“Unlike Trump’s recent shift toward crypto, which some see as an attempt to woo voters without addressing systemic problems, Harris has integrated digital assets into her opportunity economy platform,” Evans said. “Its policies aim to create an inclusive environment in which emerging technologies, like blockchain, benefit the general public rather than an elite.”

Edited by Andrew Hayward