Although 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 approaches.
Check out: I’m an Investor: I’m Making These Money Moves Immediately If Trump Wins
Read next: 7 Reasons Why You Need to Talk to a Financial Advisor to Boost Your Savings in 2024
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: That’s where Crypto4Harris comes in, a “grassroots network of crypto advocates” that hosted an event on Aug. 14, featuring speakers including Adam Schiff (D-Calif.), Crypto Council for Innovation CEO Sheila Warren, billionaire Mark Cuban and Anthony Scaramucci, according to an article on X. The keynote speaker was Sen. Kirsten Gillibrand (D-N.Y.).
At the event, Senate Majority Leader Chuck Schumer (D-N.Y.) shared his “full support for the industry” and said that “the United States Senate will pass a crypto bill before the end of the year,” according to a post on X (formerly Twitter).
Further highlighting Harris’ interest in crypto, Coinbase’s director of policy, Faryar Shirzad, said he had “had a number of discussions with Harris’ team.”
“I very much appreciate their constructive approach and commitment to advancing innovation, jobs, and consumer protection in the United States,” Shirzad said in a message posted to X on Aug. 21. “The dialogue was an important first step, and Brian Nelson’s statement is an encouraging second step in the right direction.”
Nelson, the campaign’s senior policy adviser, told Bloomberg on August 21 that Harris “is going to support policies that ensure that emerging technologies and these types of industries can continue to grow,” adding that the team is also considering implementing protections for the industry.
“Obviously, they’ve expressed that one of the things they need is stable rules, rules of the road,” Nelson told Bloomberg.
Still, not everyone is convinced about how much a Harris victory could help crypto and what regulations it might bring.
Here are some cryptocurrency regulations Harris could consider if she wins in November, according to experts.
Earning passive income doesn’t have to be difficult. You can start this week.
Regulation “by application” and higher taxes
Several experts noted that while the crypto industry in the United States lacks legal certainty, Harris has yet to provide any crypto-related policy proposals.
Read more: In 5 years, these 2 stocks will be worth more than Apple
According to Patrick Gruhn, former European director of FTX and founder of Perpetuals.com, this could likely mean that under his administration, the “regulation by enforcement” approach of the last four years could continue.
Given Harris’ latest tax proposal, additional cryptocurrency rules could also be considered to more effectively tax cryptocurrency holders, Gruhn added. “All of this would not be helpful to the U.S. cryptocurrency industry,” he said.
Clearer rules and definitions
Alexander Blume, CEO of Two Prime, said it’s fair to expect a Harris administration to be less crypto-friendly than a Trump presidency, but likely not as hostile as the current Biden administration.
In turn, one of the major positive developments he expects from a Harris presidency is that she supports the creation of clearer rules to define what is and is not a security in relation to cryptocurrencies.
“This will provide more clarity for companies looking to operate in the United States,” Blume added.
A reset
Harris’ suggestions of a reset with crypto some time ago would certainly be a welcome development given the struggles the industry has faced in the United States over the past two years, some experts say.
“The industry would unanimously support a new approach from federal agencies if the features included clear and fair regulation so that crypto creators and users can feel comfortable operating in the United States,” said Brian D. Evans, CEO and Founder of BDE Ventures.
In this regard, on July 26, several House Democrats wrote a letter to the Democratic National Committee and Harris, asking them to take a friendlier stance on cryptocurrencies and consider several measures.
They specifically called on the campaign to include “pro-digital asset language in the party platform”; to select a pro-innovation Securities and Exchange Commission chair; and to engage with industry experts, according to the letter posted on X.
Bitcoin Mining Regulations
Blume said he also expects the Harris administration to support a green energy tax on bitcoin mining companies.
“The U.S. mining industry already faces many barriers that miners in other countries don’t face, and this will only add another layer of costs and challenges that will put us further behind other regions,” he said.
Stricter compliance rules for trade
Following the collapse of several exchanges, namely FTX, Celsius, and Voyager, some experts believe that a Harris administration could implement more positive regulations regarding stricter compliance for US crypto exchanges after seeing what happened to
“It would be a good thing for the cryptocurrency industry if exchanges were required to adhere to more granular liquidity and reserve requirements, similar to those of banks,” said Matthew Webb, co-founder of wevr.ai.
More from GOBankingRates
This article was originally published on GOBankingRates.com: What Cryptocurrency Regulations Could Look Like Under President Harris
