Source: Politico
Original title: Harris triggers crypto tug-of-war between Democrats
By Jasper Goodman
Compiled by: BitpushNews Scott Liu
Vice President Harris is working to foster unity within the Democratic Party , but the cryptocurrency debate is threatening to undermine that good vibe.
Different factions within the Democratic Party want Harris to take their stance on cryptocurrency policy , an issue that has become particularly important due to the large amounts of money the cryptocurrency industry has invested in this year's election.
Pro-cryptocurrency Democrats are lobbying Harris to take a friendlier approach to digital asset companies, which are facing tough enforcement actions from regulators in the Biden administration. They argue that the Democratic Party should try to embrace the technology rather than let former President Trump, who is courting cryptocurrency enthusiasts and receiving campaign funds from several wealthy industry leaders, dominate the issue.
The push could alienate prominent skeptics like Massachusetts Sen. Elizabeth Warren , who argue that cryptocurrencies pose significant risks to consumers, the financial system and fighting money laundering, and that a more moderate approach would run counter to Biden’s policies.
“If she listens to enforcement of our income tax laws, our sanctions laws and our laws against human trafficking, she will continue to come to the same conclusions that were made during the Biden administration,” said Rep. Brad Sherman, D-Calif., who is urging Harris to maintain her existing tough stance.
Harris has not yet taken a position on digital asset policy, but her team has been in contact with cryptocurrency representatives in recent weeks, according to three people with direct knowledge of the matter. Some pro-cryptocurrency Democrats on Capitol Hill hope to go further, such as setting up a cryptocurrency roundtable that can communicate directly with Harris' team.
“It’s important to use this opportunity to re-establish relationships with the broader community and industry,” said Rep. Wiley Nickel of North Carolina, one of the Democrats who supports cryptocurrency.
At this time, the cryptocurrency industry is planning to spend more than $160 million to influence this year's election. Cryptocurrency company executives and investors aim to elect allies who support the industry to promote friendly policies and prevent opponents of cryptocurrency from coming to power. They believe that while tens of millions of people care about this issue, it is unclear how much impact it actually has on voters. The Federal Reserve said in May that only 7% of adults held or used cryptocurrency last year, down 5 percentage points from 2021.
As Harris prepares to participate in the debate, several prominent Democrats, including Senate Majority Leader Chuck Schumer and former House Speaker Nancy Pelosi, have expressed support for the cryptocurrency industry in recent weeks. In May, both voted in favor of legislation requested by digital asset companies. Schumer said in an interview earlier this month that he hopes the Senate can pass more cryptocurrency policies.
“Schumer’s openness shows his dissatisfaction with the current state of cryptocurrency,” said Rep. Ritchie Torres, D-New York, a longtime advocate for the industry.
Last Saturday, Torres and 13 other House Democrats sent a letter to the chairman of the Democratic National Committee, asking the Democratic Party to adopt pro-cryptocurrency policies, calling Biden's withdrawal from the race a new opportunity for the Democratic Party.
“If we were doing the same thing as Joe Biden, I wouldn’t have much to say,” Nickell, one of the signatories of the letter, said in an interview. “We don’t talk about the content of the meeting, we don’t talk about public policy issues. So I think the initial signs we’re seeing are good, and we’re going to see more progress in the next few weeks.”
Senate Agriculture Committee Chairwoman Debbie Stabenow, a Democrat, is working to pass a bill to reshape cryptocurrency regulation. Her bill faces resistance from cryptocurrency opponents, including Warren, who says it doesn’t go far enough to combat cryptocurrency crime.
"Harris knows what we're doing, and she's very interested in seeing the results," Stabenow said of Harris. "Harris is neutral, and we need to explain to the campaign why this is an urgent problem to solve to convince her," said Sheila Warren, CEO of the Innovative Crypto Council. "Not every Democrat is as opposed to cryptocurrency as Warren."
Meanwhile, Harris is recruiting Biden’s Treasury Under Secretary Brian Nielsen, who has played a major role in the administration’s crackdown on financial crimes involving digital assets.
“It’s always good to have someone make our leaders aware of the loopholes in the country’s anti-money laundering rules,” Elizabeth Warren said in an interview. “I don’t think Harris’ policies will support terrorists and ransomware scammers.
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