Kamala Harris Seeks to ‘Reset’ Crypto Relationships: What’s Behind the Move?

• Kamala Harris’ team has reportedly reached out to Coinbase, Circle, and Ripple Labs.
• Democratic politicians have urged the Democratic Party to select a pro-cryptocurrency SEC chairman and vice presidential candidate.

US Vice President Kamala Harris is reportedly seeking to mend fences with the cryptocurrency sector.

This step comes after it was rejected Bitcoin Invitation to 2024 conference and continued industry criticism of Biden administration.

According to the Financial Times (FT) a reportHarris’ advisors reached out to Coinbase, Circle, and Ripple Labs to reset the relationship.

Kamala Harris’s advisers have reached out to major crypto companies to reset relations between her Democratic Party and the sector.

Harris: Real Reset or Campaign Fundraising?

Harris’s initiatives and alleged settlements come amid growing industry support for her rival Donald Trump.

During a speech at the Bitcoin 2024 conference on Saturday, Trump reinforced his pro-crypto stance and pledged to make BTC US National Reserve Assets.

However, a section of the crypto community has expressed skepticism about her retreat, claiming that she may be seeking funding.

The cryptocurrency sector has become a staple of election campaigns as they rally to choose crypto-friendly candidates.

To this end, according to the latest Federal Election Commission DataFairshake, a major pro-crypto political action committee, has raised over $200 million, outpacing most traditional backers. Coinbase and a16z are among Fairshake’s biggest donors.

Interestingly, a16z, founded by venture capitalists Marc Andreessen and Ben Horowitz, has backed several Democratic candidates in the past, according to a Financial Times report. The company is also among the largest investors in the cryptocurrency industry.

Democratic Party’s stance on cryptocurrencies under pressure

However, venture capital firms have recently criticized the Biden administration and the SEC’s enforcement actions in the crypto space.

“They fought us every step of the way and used very vicious means.”

They added that the administration is “destroying the industry” and expressed their support for Trump.

Despite this perception, Harris was not seeking campaign funding, according to the Financial Times report, citing advisers to the vice president. Instead, the advisers claimed that:

“It’s an opportunity to reset relations with the tech industry, which has felt targeted by the Biden administration, particularly on antitrust issues.”

The campaign team added that they wanted to send a message that Democrats are pro-business.

In fact, that message was reinforced last Friday after Democratic politicians wrote to the Democratic National Committee.

Based on survey data, the group urge The Democratic Party nominates a crypto-friendly vice president and SEC chairman, changing its policy toward the sector.

Data shows that digital assets are being adopted at higher rates among Gen Z, Black and Latino Americans, and immigrant communities — key Democratic constituencies — than traditional financial products.

However, as of the time of publication, the leading Democratic candidates for vice president are: PolymarketJosh Shapiro and Mark Kelly do not have a strong stance on cryptocurrencies.

Source: Polymarket

A potential shift in the Democratic Party’s position could indicate that cryptocurrencies could become a bipartisan issue worth addressing regardless of who wins the election in November.