Vice President Kamala Harris is poised to continue the Biden administration's stringent regulatory stance on cryptocurrencies. With her recent appointment of economic advisers, Harris signals a commitment to maintaining a robust regulatory framework that could significantly impact the future of cryptocurrency in the United States.
Advisory Influence and Policy Direction
Harris has selected Brian Deese and Bharat Ramamurti, both former economic advisers under President Biden, known for their critical stance on lax cryptocurrency regulations. Their opposition to the Clarity for Payment Stablecoins Act of 2023, which they deemed insufficiently strict, highlights their firm regulatory philosophy.
Alex Thorn, head of research at Galaxy, noted in a recent post on X:
"NEW EVIDENCE THAT @KamalaHarris WILL CONTINUE CRYPTO CRACKDOWN. Her advisor choice suggests she will keep Biden's hostile attitude to crypto."
Investors and industry stakeholders are eagerly awaiting Harris's mid-August speech, anticipated to provide insight into her economic policies, particularly regarding cryptocurrency regulation. This upcoming address is expected to be crucial in outlining the future regulatory trajectory under her leadership.
Regulatory Context
Harris's regulatory approach is influenced by recent disturbances in the U.S. banking sector:
- In March 2023, the collapse of Silicon Valley Bank and the voluntary liquidation of Silvergate Bank created turbulence in the financial landscape.
- Signature Bank was also closed by New York regulators on March 12, shortly after Silvergate's issues.
- Nic Carter, a crypto venture capitalist, termed these events "Operation Chokepoint 2.0," describing them as a coordinated effort to marginalise the crypto industry.
Thorn from Galaxy emphasised that Deese and Ramamurti played key roles in these regulatory measures, reflecting the administration's targeted approach against crypto-friendly banking operations.
The appointment of these advisers has sparked debate about the future regulatory environment for cryptocurrencies. Fortune magazine has referred to Ramamurti as the "White House's top crypto critic," reinforcing expectations of a tough regulatory stance.
Thorn elaborated on the implications of these appointments:
"People are policy at the end of the day, and if Brian Deese, Bharat Ramamurti, Wally Adeyamo, et al. are set to lead economic policy in a Harris/Walz administration, it's very unlikely the administration will soften its stance on crypto."
Political Context
This development follows Harris's announcement of Minnesota Governor Tim Walz as her running mate for the 2024 U.S. presidential election on August 6. This move reflects her strategy to ensure continuity in economic policy from the Biden administration.
Vice President Kamala Harris's choice of economic advisers suggests a likely continuation of the rigorous regulatory regime for cryptocurrencies in the U.S. The financial world eagerly anticipates her forthcoming economic policy speech for a definitive direction on regulating this dynamic industry.
Source: Digital Market Reports
