Source: CoinDesk
Original title: How Kamala Harris Could Usher in a Clean Slate for Crypto Regulation
Original author: Tonya Evans
Compiled by: BitpushNews an
In just one week, the situation has changed dramatically. On Thursday, July 18, at the Republican National Convention, Donald Trump formally accepted the Republican Party’s nomination as the candidate for the 2024 presidential election. Just days earlier, he had just escaped an assassination attempt. At 1:46 pm on Sunday, July 21, President Biden announced that he had decided not to seek re-election, and everything changed. The political landscape has become as volatile as the Bitcoin price chart.
With Biden’s endorsement, Vice President Kamala Harris has quickly become the presumptive Democratic nominee, raising small donations at a pace similar to Barack Obama’s 2008 presidential campaign. Yet that enthusiasm has come to a halt in the face of a well-funded cryptocurrency industry that has taken an offensive stance to protect itself from a hostile regulatory environment and has united to form a single-issue voting bloc ready to cast its votes for the Republican candidate.
Almost as soon as the news of Biden’s withdrawal from the race broke, I began to see posts from the cryptocurrency community on social media discussing the Harris administration’s stance on cryptocurrencies. Will she continue to take an adversarial policy stance of regulation through enforcement, or will she seize the opportunity to reimagine cryptocurrency policy with the goal of embracing the new economy? Or start a new direction?
Then I saw rumors swirling on social media that Vice President Harris was considering attending the Bitcoin 2024 conference, which will be held in Nashville, Tennessee from July 25 to July 27. Trump, Michael Saylor, and Elon Musk are also expected to attend, making this conference a high-stakes event with great significance.
On Thursday, July 24, conference organizer and Bitcoin Magazine CEO David Bailey shared the news on X that Vice President Harris declined to attend. Considering that arranging the travel of a senior federal official would take more than 48 hours, and the process would involve coordination, review and approval from multiple offices.
Still, Harris’s consideration of attending the convention can be seen as a win. With the cryptocurrency industry’s voices on the Harris campaign’s radar, Harris now has a chance to speak to the Bitcoin community and begin the work of repairing relationships to counter the anti-cryptocurrency attacks and regulation through law enforcement deployed by the current administration.
The Biden Administration’s Anti-Crypto Policy
Under Biden, cryptocurrency regulation has been known for a chaotic and confusing enforcement, largely influenced by Sen. Elizabeth Warren (D-Mass.), who is known for her skepticism of the cryptocurrency industry and advocates for strict regulatory measures to protect consumers and maintain financial stability. Her influence is evident in the administration’s “Chokepoint 2.0” strategy and the positions of her ally, Securities and Exchange Commission Chairman Gary Gensler, and prudential regulators that restrict the cryptocurrency industry’s access to traditional banking services, effectively “de-banking” the industry.
Fueled by misinformation and a shred of truth, Warren’s approach focuses on addressing the risks associated with cryptocurrencies, including fraud, money laundering, and terrorist financing, without properly balancing the discussion, balancing the risks with the considerable opportunities for economic justice, and separating fact from fiction.
A Tech Moderate
Vice President Harris has previously taken a softer stance on technology regulation than the current administration’s approach. Throughout her career, she has built strong relationships with major tech companies, such as Facebook and Google. She has made numerous appearances at these companies’ headquarters and has hired employees and allies from these companies to advise her campaign on technology policy. Her approach emphasizes finding a balance between regulation and allowing technology to advance. A strategic policy shift that combines past openness to innovation with her campaign’s focus on middle-class economic empowerment could create a win-win opportunity that optimizes both investor and consumer protections while supporting the robust development of the Web3 economy driven by blockchain and cryptographically secure digital assets.
So what signals that she’s willing to shift gears on cryptocurrency policy? For one, billionaire Mark Cuban noted on X this week that Harris’ team has been asking a lot of cryptocurrency-related questions. That, combined with her record of supporting innovation and discussing the possibility of attending a 2024 Bitcoin conference, bodes well for a different approach in a Harris administration.
Ten policy shifts for the new era
As the Democratic presidential candidate, Harris has a unique opportunity to chart a new path for cryptocurrency policy, which I call the "New Economy 2025," one that balances sensible and transparent regulation with robust innovation for investors, consumers, and businesses. This approach will ensure that the United States maintains leadership in the digital asset economy while promoting financial inclusion and protecting consumer interests. To that end, here are ten policy shifts that could redefine the Democratic Party's stance on digital assets and promote a more inclusive financial ecosystem during a Harris presidency:
Revising securities laws to promote clarity and innovation
What it is: Amending existing securities laws to clearly distinguish between securities and commodities in the context of cryptocurrencies. I strongly advocated for this in my testimony before the House Financial Services Committee’s Subcommittee on Digital Assets, Fintech, and Inclusion.
Action: Ensure that relevant and specific agencies are designated to regulate the cryptocurrency industry to prevent overly broad or conflicting interpretations that could hinder market growth and stifle innovation.
Updating banking regulation to enable cryptocurrency integration
What: Amend the Bank Secrecy Act and other banking regulations to create clear guidelines for banks dealing with cryptocurrency.
Approach: Promote a crypto-friendly banking environment that enables financial institutions to confidently engage with the cryptocurrency industry, reduce perceived and actual risks, and promote greater integration and accessibility. In addition, consider the legislative and regulatory adjustments needed to include Bitcoin reserves as part of central bank reserve portfolios.
Reforming tax policies to support the digital economy
What: Reform tax policy to address the unique aspects of digital assets and provide clear tax guidance on cryptocurrency transactions and holdings.
Approach: Create a framework that enables individuals and businesses to safely and legally meet their tax obligations when participating in the digital economy, ensuring fair participation across all economic income levels.
Strengthening consumer protection
What: Strengthen consumer protection laws for the cryptocurrency market, ensuring transparent disclosures and safeguards against fraud.
Approach: Implement measures to provide victims with clear avenues for redress, build consumer trust, and ensure a safer cryptocurrency market, particularly protecting vulnerable groups.
Enact strong privacy laws to protect personal data
Content: Enact strong privacy laws to protect personal data in blockchain and digital identity systems.
Approach: Promote privacy-friendly digital identities, ensure cryptocurrency transactions respect individual privacy rights, and protect marginalized communities from exploitation.
Integrating cryptocurrency and blockchain education
What: Incorporate cryptocurrency and blockchain education into national education standards, including financial literacy programs.
Approach: Ensure access to education for all populations by providing individuals with the necessary knowledge to confidently and responsibly navigate the digital economy through school curricula and adult education programs.
Allocating federal funds for blockchain research and development
Content: Allocate funds to support research and development of blockchain technology.
Approach: By investing in research and development to encourage innovation, create jobs, and maintain America’s competitive advantage in the global digital economy, particularly benefiting underserved communities by creating jobs and promoting economic inclusion.
Promoting financial inclusion on decentralized financial platforms
Content: Encourage the development and adoption of decentralized finance (DeFi) platforms to provide financial services without traditional intermediaries.
Approach: Increase access to financial services to underserved communities, promote financial inclusion, and reduce wealth disparities.
Forming public-private partnerships to advance the public interest
What: Establish partnerships between government agencies and private blockchain companies for public infrastructure projects.
Method: Develop digital identity systems and transparent supply chains based on blockchain technology to improve public services and economic opportunities. At the same time, consider setting up a regulatory sandbox to work with government stakeholders to further promote and support innovation and learn from experience for effective guidance.
Coordinating international cryptocurrency regulation
Content: Positioning the United States as a global leader in cryptocurrency regulation by working with international organizations.
Approach: Develop coordinated regulations that ensure the United States plays a central role in shaping the future of the global digital economy and promote stability and cross-border innovation.
By implementing these initiatives, the Harris Administration can create a regulatory environment that both protects investors and fosters innovation, while promoting economic justice and opportunity and ensuring that the United States remains a leader in the digital asset economy.
The “New Economy 2025” vision will emphasize the transformative potential of blockchain and cryptocurrencies, leveraging technology to create a more fair and inclusive financial system that will lead to more investment opportunities, job creation and economic growth, protect consumers, investors and industries from fraud and scams, simplify taxation, promote financial inclusion and economic justice, and enhance stability and confidence in the industry.
Cryptocurrency is political; it should not be partisan. Harris’ record of advancing technology and protecting privacy rights uniquely positions her to leverage the transformative potential of blockchain and cryptocurrency.
As we move forward, advocacy for regulatory clarity, consumer protection, financial literacy, and global collaboration will be critical to solidifying America’s leadership in the digital asset economy. By embracing this reimagined approach, we can truly democratize financial opportunity, empower marginalized communities, uphold the values of freedom and privacy, and pave the way for a prosperous and inclusive “New Economy 2025.”
