Author: Hadriana Lowenkron, Bloomberg; Translated by: Tao Zhu, Jinse Finance
Harris’ campaign policy adviser said she would support measures to help develop digital assets and highlighted efforts to enlist the nascent cryptocurrency industry to expand its political influence.
“She’s going to support policies that ensure emerging technologies and industries like these can continue to grow,” Brian Nelson, a senior campaign policy adviser, said Wednesday during a Bloomberg News roundtable at the Democratic National Convention when asked about the vice president’s efforts to engage with the cryptocurrency community.
Some cryptocurrency investors are backing former President Donald Trump’s campaign after the Republican candidate said he favors less government regulation of the industry. The Republican — who previously called cryptocurrency a scam — now holds at least $1 million in digital currencies and said the U.S. should embrace the industry to prevent China from taking the lead.
Harris' team said they remain interested in enforcing protections for the industry, which has seen a number of high-profile companies fail.
“Obviously, they’ve said one of the things they need is stable rules,” Nielsen said, noting that Harris laid out the initial pillars of her economic policy in a speech last week.
During a campaign stop in the swing state of North Carolina last week, Harris did not specifically mention digital assets in her speech but vowed that if elected president she would be “focused on cutting unnecessary bureaucracy and unnecessary regulatory red tape” and encourage “innovative technology while protecting consumers and creating a stable business environment with consistent and transparent rules.”
Chasing Cryptocurrency
The cryptocurrency industry, which has chafed at what it sees as an onerous regulatory regime under President Joe Biden’s administration, is seeking to flex its influence this year, including through large political donations.
Trump said he would fire SEC Chairman Gary Gensler (whose term ends in 2026), choose regulators that are friendly to the industry, form a presidential advisory committee on the crypto industry and create a stablecoin framework.
The move to reduce regulatory enforcement of virtual currencies has won Trump support from prominent cryptocurrency enthusiasts, including billionaire twins Cameron and Tyler Winklevoss, who run Winklevoss Capital Management and are big investors in Bitcoin. Both have donated to pro-Trump organizations.
Rohini Kosoglu, who served as Harris’ domestic policy adviser, said at Wednesday’s roundtable that the candidate’s economic policies would provide more certainty for businesses than a second Trump administration.
“Businesses are concerned about the chaos that a second Trump administration would bring and what that would mean for businesses that don’t know the rules and ensure they have a chance to grow and prosper in the economy,” she said.
Trump has said that if re-elected he would extend expiring tax breaks and impose sweeping tariffs on U.S. allies and adversaries, moves that critics warn could exacerbate high prices and upend global trade.
Nielsen expressed uncertainty about the scope of Trump's tariffs on businesses. "If I were a businessman, I don't know how I would run my business in that environment," he said.
Policy launch
Harris has had to launch her campaign in a short space of time after Biden dropped out of the race, with less than three months until Election Day. The Democratic nominee last week began rolling out her policy agenda, focusing on the economy — which voters see as a central issue in November's election and potentially one of her biggest political liabilities.
High inflation hitting American households has fueled widespread dissatisfaction with the government’s handling of the economy, undermined Harris’ campaign and overshadowed efforts by her and the president to tout investments in infrastructure and domestic manufacturing.
Harris has said building the middle class would be a focus of her presidency if she is elected, touting proposals such as $25,000 down payment assistance for first-time homebuyers, expanded tax credits and programs aimed at curbing rising rent and food costs. Harris’ campaign said the costs of the new proposals would be offset by higher taxes on businesses and high-income earners.
Harris supports raising the U.S. corporate tax rate to 28% from 21% to match Biden's recent budget proposal. Trump cut the corporate tax rate from 35% to 21% after taking office and has proposed further cuts.
Nelson defended the 28 percent tax rate as "reasonable" and said Harris' goal is to "make sure businesses pay their fair share."
