Democrats Shift on Crypto: Schumer Promises Bipartisan Legislation if Harris Wins Presidency

The ground has shifted in the crypto world, as to unexpected changes, influential Democrats have had a change of heart about cryptocurrency regulation. And now, as the countdown starts towards 2024 presidential election, there is a high probability that Vice President Kamala Harris may become one of its biggest participants.

Schumer’s Pro-Crypto Stance

At a Town Hall meeting organized by Crypto4Harris, a grassroots advocacy group, U.S. Senate majority leader Chuck Schumer (D-NY) made headlines. If Harris is elected president, he said he would prioritize the passage of bipartisan crypto legislation by 2024.

“ A future with crypto, which has common sense and sound regulation, is what we all believe in” mentioned Schumer. He further added that Congress should act with proper legislation, to make sure that crypto innovation does not go abroad and remains firm here in America.

Schumer emphasized on the need of fostering innovation as well as ensuring that the public is safe, national interests secured, and bad actors do not misuse it. He also wanted to “remove any doubts” about whether Harris would maintain the same adversarial position towards digital currency as Biden did in his administration.

Bipartisan Support and Industry Engagement

The proposed framework was also supported by Senator Debbie Stabenow (D-MI), who is the chairman of the Senate agricultural board. She expressed her commitment to creating a regulatory architecture that would, on one hand, protect consumers and encourage innovation in the industry. Stabenow even suggested that cryptocurrency assets should be regulated as commodities rather than securities! This was an indication of an ongoing legal fight for jurisdiction between Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC).

Other democrats like Representative Wiley Nickel (D-NC), Senator Kirsten Gillibrand (D-NY), Colorado Governor Jared Polis (D), as well as Representatives Elissa Slotkin(D-MI) and Adam Schiff(D-CA) also agreed with the need for new laws relating to cryptocurrencies.

Industry Support and Criticism of Republicans

Surprisingly, the crypto space had shown an early preference for Harris, upon her presidential nomination, compared to the Biden administration which received very little support. Wealthy investors such as Mark Cuban have attacked Trump and the Republican Party claiming that they were only about themselves and cryptocurrency “elites.” Similarly, former Trump administration official Anthony Scaramucci, who founded SkyBridge Capital called for “less tribal” approaches to cryptocurrencies and has encouraged more bipartisan policy initiatives.

Circle’s CEO Jeremy Allaire has revealed that Harris campaign representatives have been making a concerted effort to understand crypto-related policies. In a video interview, held on August 8th, Allaire was joined by White House officials, U.S. lawmakers, as well as representatives from the Harris campaign. During this event, crypto industry leaders and the uber influential democratic officials had a chance to discuss about crypto asset adoptions and ongoing sector forward initiatives.

According to Allaire, “There seems to be a sense of purpose on the part of both the administration and the Harris campaign, to get really familiar with the issues at hand, including players from various other industries.” He insisted that the crypto sector is expecting a clear path towards concise policy statements from the Harris campaign and the White House, within the vice president’s economic policy agenda.

Crypto’s Evolving Political Landscape and the Need for Regulatory Clarity

Cryptocurrency policy has gained more attention lately, leading to a major change in the political landscape. “Just two years ago it would of been hard to believe that crypto was going to become a presidential issue,” according to Allaire.

Nonetheless, Harris has still yet to clearly declare her policy positions. Until she does, her stance on crypto will most likely and unfortunately, be considered against the backdrop of Biden’s record, which is full of enforcement actions, lawsuits and lack of industry specific regulations.

The push for crypto legislation is being pursued at a pivotal moment for this very unique financial asset. As digital currencies and blockchain technology continue to grow in popularity, there are many who worry that there needs to be further stringent regulations in place. It is possible that the absence of distinct guidelines has caused disarray among some financial sector players, which could restrain creativity and expansion across the industry.

Challenges Ahead Within the Global Context

Although the Democratic party has changed its tune, there are still major hurdles to overcome when it comes to creating and passing a full crypto bill that is all-encompassing. These are:

1. Uniting fragmented factions within the Democratic ranks
2. Getting bipartisan support in Congress to support any incoming crypto legislation
3. Fostering technological progress while safeguarding public interests and national security imperatives
4. Establishing proper oversight for the sector between agencies like the SEC and CFTC

Similarly, the current crypto regulations in the U.S., are being pushed at a time of global upheavals,  affecting the crypto sphere. Nations like China and South Korea have already put forth their own guidelines on digital currencies while Japan recently recognized bitcoin as a legal means of exchange. This means that, without urgent action, there is fear that America could lag behind in promoting cryptocurrencies innovation.

Conclusion

With the incoming 2024 election, it is more clear than ever, that now is the opportunity to push for a complete overhaul of current U.S. cryptocurrency policies. A dynamic shift in the Democratic party’s crypto ideology has emerged with key figures like Chuck Schumer who may possibly embrace Kamala Harris’ thinking. But, it remains to be seen if such rhetoric can result into concrete legislation changes.

These democratic whispers and chatters, have yet to answer many policy questions. Never the less, in light of all this, there remains a ray of hope within the crypto industry as well as its proponents. How would Harris distinguish her stand on cryptocurrencies from Biden’s administration? Can consensus be reached in drafting comprehensive legislation? And, what might these shifts imply for wider adoption and regulation of digital currencies in America?

As democratic political chatter continues on regarding this very unique financial class, one thing remains clear – digital assets are having their “Aha Moment” and are now rightfully and squarely placed at the helm of economic policy debates. The forthcoming months are going to be decisive in shaping up both US crypto regulation details and influencing the global digital asset perspective. We shall all see where this industry stands, on that first morning post the evening of the Tuesday next after the first Monday of November 2024!

Acknowledgment: This article was inspired by and includes information from “Full circle: Democrats Vow to Pass Bipartisan Pro-Crypto Legislation if Harris is Elected President” published on Kitco.com. For more detailed insights, you can read the full article here.