The 2024 presidential election pitting former President Donald Trump versus current Vice President Kamala Harris will be a historically monumental one. The American public’s choice of president will shape the United States at a crucial turning point in the nation’s economy.
This election is especially significant in the world of cryptocurrency. Though digital assets may not inspire the same air time as other hot-button issues, the two presidential candidates have dramatically different track records and statements pertaining to this sector. Each candidate may lead the United States—and the current crypto bills on the docket—down divergent paths.
This article will dissect Trump and Harris’s stance toward cryptocurrency, free of any political discussion, and analyze what each candidate’s election could signify for key bills in particular and the future of cryptocurrency in general.
Trump's track record provides more material to evaluate his potential leadership on cryptocurrency because he already served in this role. During his first term in office from 2017 to 2021, Trump was a vocal proponent against cryptocurrency.
“I am not a fan of Bitcoin and other cryptocurrencies [sic], which are not money, and whose value is highly volatile and based on thin air. Unregulated crypto assets [sic] can facilitate unlawful behavior, including drug trade and other illegal activity,” he said in a thread on Twitter, (now X).
The administration generally towed this line under his leadership. Trump had appointed Jay Clayton to serve as the chairman of the Securities and Exchange Commission (SEC) in 2017. Although the SEC operates as a federal agency independent of the executive branch, it can still follow the general direction from the presidential office.
To this end, the SEC pursued an agenda that indeed sought to treat businesses that offered digital assets as unrelated securities exchanges. In 2018, for example, the SEC announced enforcement action against EtherDelta founder Zachary Coburn, owing to the 3.6 million orders made of ERC20 tokens, which were commonly used for initial coin offerings (ICOs).
Coburn cooperated with the SEC investigation, which resulted in a reduced punishment focused around stiff fines:$75,000 penalty, $13,000 in prejudgement interest, and $3,000 in disgorgement.
The SEC also went after businesses or channels that facilitated ICOs. For example, in 2020, the SEC went after Telegram, which the agency concluded had offered unregistered securities by conducting an ICO through its token, Grams. As part of the penalty, Telegram was forced to return the $1.2 billion it raised from a total of 171 purchases, plus pony up an additional $18.5 million.
In short, under Trump, the United States relied on existing laws to regulate digital assets rather than create a comprehensive framework for digital assets. The country also did not pursue any of its own government-led initiatives in space, such as central bank digital currency, even though close to 98% of the world was exploring CBDCs by 2023.
His 2024 reelection campaign has marked a 180-reversal for Trump. In recent statements, he has vowed to create crypto-friendly regulations for businesses in the space.
“We will have regulations, but from now on the rules will be written by people who love your industry, not hate your industry,” he said at the Bitcoin 2024 conference. He has not only been vocal about his now pro-crypto stance, but he has outlined a few major initiatives he would lead in support of the industry.
Although Vice President Kamala Harris is currently serving in this role under the Biden administration, it is more difficult to determine her own views on cryptocurrency. For one, the vice president typically serves a more symbolic role compared to the president, who is the primary leader and decision-maker in the executive branch.
Still, as a VP, it can be inferred that Vice President Harris must have generally agreed with the stance of the Biden administration. One can argue that the Biden administration has merely ramped up the prosecution of crypto businesses, an orientation that ironically began with his predecessor and rival Trump.
In 2021, President Biden nominated Gary Gensler to be the chairman of the SEC. Like Clayton before him, Gensler pursued aggressive enforcement action against businesses it felt were offering unregistered securities by virtue of selling digital assets. The SEC pursued cases against Coinbase, Binance, BlockFi, Terraform Labs, and many others. In 2023, the SEC widened its net, targeting NFT issuers for the first time as well as influencers that pushed crypto assets.
Apart from the Biden administration’s aggressive stance toward the crypto sector, Harris has generally remained quiet on the topic during her own presidential campaign. This ambiguity is drawing criticism from industry leaders, such as Cardano Founder Charles Hoskinson.
“No specific policy or proposal. Just talk. Will gary [sic] be fired? What legislation do you support? What executive actions will be issued? Why haven’t you changed the policy RIGHT NOW since you’re [vice] president. I’m sorry there is ZERO trust. We need specific, tangible actions,” he wrote.
Fellow democrats are also pressuring her to take an official stance, especially in light of the sector’s growing role in political contributions this election season. Without explicit remarks, analysts are trying to infer her likely stance based on current actions. For example, some argue that Harris will likely remain anti-crypto due to her working closely with Brian Deese and Bharat Ramamurti, two leaders from the Biden administration who are said to have architected the current regime.
The voting public is getting some insight into how a Harris administration may treat the crypto industry through third-parties.
On August 21, Coinbase Chief Policy Officer Faryar Shirzad publicly shared that he had some positive discussions with her team, which may signal a more crypto-friendly approach. At a Bloomberg roundtable at the Democratic National Convention, Brian Nelson, a senior advisor for policy for her campaign, said, “She’s going to support policies that ensure that emerging technologies and that sort of industry can continue to grow.”
While crypto businesses eager for more progressive regulation may interpret these remarks favorably, they are at most vague and non-committal. What form this support may take could come in any number of policies, programs, and initiatives. With Trump taking a more vocal stance on crypto, this area should be one to watch: Will Harris offer a more concrete stance on what she will do for crypto to woo voters who care significantly about this issue?
With still more than two months to go toward election day, Harris has plenty of time to outline her stance on cryptocurrency. Industry stakeholders will examine whether she will cling closely to the hardline stance of President Biden, or indeed forge a more crypto-friendly approach similar to Trump that may differ primarily in the specifics of the execution. No matter what she details, it will be refreshing to see digital assets getting their proper place on the national stage.
President Trump’s first presidency was characterized by the SEC treating digital assets as unregistered securities. He has reversed course in his current presidential campaign, proclaiming that he will create pro-crypto policies. This campaign promise may mean executive support for the pending crypto-related acts like the Lummis-Gillibrand Responsible Financial Innovation Act as well as prioritization of Trump-initiated campaigns, such as the establishment of an presidential advisory council on crypto, the creation of a Bitcoin national reserve, and the replacement of current SEC chairman Gary Gensler with a more leader
Vice President Harris’s position is more difficult to ascertain. If she is to continue the trajectory of President Biden, her presidency would be marked by increasingly aggressive pursuit of businesses that offer digital assets as well as other culpable parties, like influencers that promote them. Vice President Harris has vowed to take a more progressive stance on crypto regulation, which she may be trying to concretize through closed-door meetings with industry leaders. Her official statements are largely non-committal, but this silence may change as industry stakeholders and fellow Democrats alike call on her to clarify her position.
Crypto leaders will inevitably have their preferred choice of president, the candidate they view will lead to the best business environment for them. While it’s natural to have a preference, crypto businesses should not bank on a particular election result.
Such businesses should strive to excel in the regulatory environment, as it stands today. The best way to achieve this goal is through a strong compliance program driven by blockchain analytics tools. One such example is Merkle Science’s Compass, which will help businesses succeed in the regulatory environment, today and in the future, no matter who wins.