Turning point for crypto regulation: Kamala Harris could support the innovation of the sector

According to some rumors leaked during the political propaganda event Democratic National Convention (DNC), Kamala Harris might backtrack and proactively support the regulation of the crypto sector.

The democratic candidate for the United States presidential elections would be inclined to support emerging technologies, including cryptographic ones.

This is a real turning point for the industry, which thus finds political support from both the bull side with Trump and the bear side with Harris.

Let’s see all the details below

Kamala Harris changes her mind on crypto regulation: more freedom for innovation

Yesterday in Chicago the event “Democratic National Convention” (DNC) was held where an anti-crypto message was expected from Kamala Harris regarding the regulation of the industry.

Surprisingly, however, there was no speech against the digital resources sector. On the contrary, a clue was found that could suggest a clear change of perspective for the democrats.

According to what was stated by Bloomberg Crypto, Undersecretary Brian Nelson reportedly said verbatim that Kamala Harris during her election campaign:

“will support policies that ensure that emerging technologies and that type of industry can continue to grow”

The reference is obviously directed towards cryptocurrencies and its broad market, marking a clear shift from Joe Biden’s aggressive policy

According to Harris’s aide, the candidate could be proactive in addressing concerns related to crypto and blockchain before the November elections.

On August 16, Sheila Warren, CEO of Crypto Council for Innovation, stated in an interview that she expected Harris’s speeches to generally touch on innovation but at the same time did not expect any direct reference to crypto.

She then continued by stating that:

“I understand that Crypto likes to be the number one topic of importance at all times, but there are many other things going on. We want both candidates to be pro [crypto]. The goal is to get Harris on Trump’s side.”

In the next 31 days, we can expect some good news for the sector, in conjunction with Kamala Harris’s electoral milestones.

The Democrats on the cryptocurrency sector

The news, although not directly confirmed by Kamala Harris, marks a great turning point for the topic of crypto regulation, which has historically been approached negatively by the democrats. During his presidency from 2021 onwards, in fact, Joe Biden has always expressed reluctance regarding the requests of cryptographic companies.

In May, he had rejected through the right of veto the bill favorable to crypto FIT21, despite the previous approval by the House of Representatives.

Less recently, it had always focused on the negative impacts of the industry, highlighting the related risks in financial crimes and in the financing of terrorism.

Even her aides like the Massachusetts senator Elizabeth Warren have always taken a clear stance against the development of crypto.

Now with the handover to Kamala Harris, we have witnessed a more moderate political campaign, without direct references to the crypto theme.

She has not held many rallies or individual interviews, leaving voters in a gray area regarding her political platform for 2025.

In the meantime, the top representatives of the crypto industry hope that the democrats can soon switch to the orange team of Bitcoin.

During the next stages of Harris’s election campaign, there might be closer discussions about technology and regulation.

At the same time, it is unlikely that more delicate topics such as KYC practices, AML obligations, formal registrations, etc., will be addressed.

In this phase, both political factions are trying to gain the support of as many Americans as possible and avoid explicitly going against entire categories, such as the crypto one.

This does not mean that, if elected, Harris will actually start supporting the digital asset sector. Rather, we could have a positive impact on prices in conjunction with the November elections and in the weeks leading up to them.

Donald Trump like Kamala Harris: he too was against regulation in the past

Donald Trump, in a manner very similar to what we are observing with the democrats, had suddenly changed his mind regarding the topic of crypto regulation.

The billionaire Republican until 2021 was openly against Bitcoin and the decentralization revolution to the point of having attacked the principles on which the sector is based.

In a statement, he had indeed claimed that Bitcoin is “based on nothing” and that all cryptocurrencies are a scam.

After a few years, he went from being totally against to being completely in favor of everything related to crypto, blockchain, and innovation.

During his last campaign rallies, he made a series of promises to the cryptographic industry, which he will implement if elected.

Among these, we find the immediate dismissal of Gary Gensler, the establishment of a pro-bitcoin federal organization, and the opening to regulation regarding digital assets. To gain the approval of the crypto public, Trump also said he would include BTC as a strategic reserve of the Treasury, implicitly supporting its price.

In the financial market, the terms “bull” and “bear” are often used to describe market trends. A “bull” market is characterized by rising prices, while a “bear” market is characterized by falling prices. Investors need to understand these terms to make informed decisions.

Obviously, these can only be empty promises, with no binding commitment that can guarantee that what has been stated will then be carried out.

As always, politics offers what is most rotten in society, expressing at the highest level the selfishness and occasional interest of individual representatives.

In any case, even if neither Donald Trump nor Kamala Harris will actually contribute to the growth of the crypto world, the latest news remains positive.

The market will see a more optimistic pricing of the transition to a less aggressive election campaign by Kamala Harris in reference to crypto.

In conjunction with the November elections, the stock markets might indeed smile at the idea that, no matter what happens, there will be a pro-cryptographic innovation president.

In the meantime Paul Grewal of Coinbase, having fought multiple times with the democrats, points out the fake benevolence of Harris and invites caution: