Why Kamala Harris is quietly embracing crypto
Young men, big donors both matter in the campaign
An important new question for presidential candidates: Where do you stand on cryptocurrencies? Donald Trump has already made friendly gestures to the crypto sector. Now Kamala Harris appears to be joining in.
In an "overture to young men," Axios said, Harris has signaled her "friendliness to cryptocurrency." The signal came at a recent Wall Street fundraiser. "We will encourage innovative technologies like AI and digital assets, while protecting investors and consumers," she told attendees. Why now? Election-year outreach. Younger men are "more likely than any other voter group to own cryptocurrencies," said Axios, and they're also trending toward Donald Trump and the GOP at a rate that is "alarming" to Democrats.
"Welcome to the crypto election," Claire Williams said at American Banker. The industry has become one of the "most visible and vocal" business sectors trying to influence the 2024 presidential and congressional elections — with a campaign "war chest" that already exceeds the banking industry's contributions. That's an "enormous" amount of power for a "fledgling industry," said Williams. The aim? To see more "industry-friendly regulators and legislation come 2025."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Looking for a 'breakout year'
Cryptocurrency was "once on the fringe of finance" but now stands ready for a "breakout year" after the November election, Laurent Belsie said at The Christian Science Monitor. But the industry has also attracted the attention of regulators — including Democrats and Republicans in Congress — who see both "potential and pitfalls" in digital currencies. Trump has indicated his own warmth to crypto, backing his sons' World Liberty Financial project and speaking at the Bitcoin conference. But some in the industry have kept an eye on Harris."You don't win statewide elections on several occasions in California without being tech-forward," said a speaker at last month's Crypto4Harris fundraiser.
The election could "define the future of crypto," said the BBC. The Biden administration has led a "sweeping crackdown" on crypto firms — prosecuting FTX founder Sam Bankman-Fried for fraud and Binance co-founder Changpeng Zhao for allowing criminals to launder money on his platform. Those prosecutions might be why the number of Americans using cryptocurrencies dropped to 7% last year. A tight presidential race, though, could give the industry some leverage with both candidates. "Every vote is going to count," said one executive, and "crypto votes are no exception."
A 'dialogue' between campaign, crypto industry
Money may be a bigger factor than votes. The industry has already spent $119 million on this year's elections, "magnitudes more" than in previous cycles, Whizy Kim said at Vox. Crypto can muster that financial power even though the product itself has "struggled to gain any real traction with the public." Digital currencies have been around since 2009, but crypto "still hasn't penetrated" as a mainstream payment method. Instead, it is mostly used as a "vehicle for speculative investment." That might be why companies "redoubled their efforts to help elect pro-crypto politicians."
Harris' fundraiser comments were "deliberately broad," Jesse Hamilton said at CoinDesk. But she is unlikely to offer a "deep dive" into potential crypto policies before the November election. Her campaign has kept "dialogue running with a narrow group of industry executives and insiders." That's "progress" one executive told Hamilton. "All we want are sensible rules," said Coinbase's Paul Grewal, "and we'll follow them."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.
-
5 conspiratorial cartoons about FEMA
Cartoons Artists take on paper towel politics, king-sized conspiracies, and more
By The Week US Published
-
Take an island-hopping trip around Brittany
The Week Recommends From neolithic monuments to colourful harbours, there is much to discover
By The Week UK Published
-
Why has Joker: Folie à Deux divided critics?
Talking Point The sequel to Joker is 'staggeringly inept' in its attempts to explore mental health issues – but Lady Gaga is 'magnetic'
By The Week UK Published
-
The life and times of Kamala Harris
The Explainer The vice-president is narrowly leading the race to become the next US president. How did she get to where she is now?
By The Week UK Published
-
Why NATO, Ukraine are nervous about a second Trump presidency
The Explainer A 'radical reorientation' of U.S. policy is possible
By Joel Mathis, The Week US Published
-
Bob Woodward's War: the explosive Trump revelations
In the spotlight Nobody can beat Watergate veteran at 'getting the story of the White House from the inside'
By Chas Newkey-Burden, The Week UK Published
-
'Nobody sees themselves in the word 'other'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
Who are undecided voters, anyway?
Talking Points They might decide the presidential election
By Joel Mathis, The Week US Published
-
Arizona kicks off swing-state early voting
Speed Read The voting began with less than a month to go before the presidential election
By Peter Weber, The Week US Published
-
Donald Trump's health care plan would retain the status quo
The Explainer The Republican Party is still having difficulty formulating concrete health care proposals
By David Faris Published
-
What power does Elon Musk hold as a campaigner?
Talking Points The world's richest man is going all in to get Donald Trump elected in November — whether it will make a difference is entirely unclear
By Rafi Schwartz, The Week US Published