Kamala Harris' team wants to take a position on crypto, source says, as outreach to the industry forges on

Vice President Kamala Harris' presidential campaign team has begun reaching out to ask questions about the cryptocurrency industry, a source who spoke with a member of her campaign team said.

Harris' team wants to learn more about crypto, the source said, calling the discussion itself a "relatively high-level intro conversation." They said her team asked why crypto is getting a lot of attention and wanted more information on past conversations the crypto industry had with President Joe Biden's advisor.

"My impression is they get that this matters," the source said. "They want to have positions on it… they're going to take their time."

Kevin Munoz, Harris' spokesperson, did not respond to a request for comment from The Block.

Harris has swiftly become the likely Democratic nominee to run against former President Donald Trump in the upcoming election. Biden announced on Sunday he would not be seeking reelection in the 2024 presidential election and endorsed Harris to replace him as the Democratic Party's nominee.

Trump, meanwhile, has pledged to end an "unlawful and un-American crackdown" on the U.S. crypto industry and has reportedly called himself the first crypto president.

Money-wise, political action committees have raised millions ahead of the upcoming election. Pro-crypto group Fairshake recently became the largest super PAC of this U.S. election cycle, having raised over $200 million.

Harris' team has also reportedly spoken with billionaire Mark Cuban. Cuban told Decrypt on Wednesday that advisers close to Harris have begun reaching out to ask about crypto. Cuban and did not respond to a request for comment.

Kristin Smith, CEO of the Blockchain Association, said they reached out to the Harris campaign and that she hopes to connect with them soon. Smith also said they would want to let Harris know that the industry needs "thoughtful regulation."

"I think there's really a fresh opportunity here for her to show leadership from the top of the Democratic party," Smith later added.

Crypto isn't going anywhere, and both campaigns need to talk about it, said Moe Vela, a former senior advisor to Biden, in an interview. Over 75 million people are involved in crypto in the U.S., Vela said, mirroring other stats that say 21% of Americans own crypto.

"From a political perspective, I think it's absolutely imperative, I mean, it's just foolish for either campaign not to recognize the political power of 75 plus million potential voters," Vela said.  "I don't know any data that shows that these are disproportionately one-issue voters, but even if they're not one-issue voters, you still, as a candidate for president of this country, must articulate your vision for how cryptocurrency will be integrated into our banking and finance and investment systems."

Vela said crypto could get a bit lost on the issue priority list for candidates and is not part of the top three issues given other topics that take priority, such as war, immigration and the economy.

Vela, also a senior advisor to cryptocurrency Unicoin, said he reached out to Harris' campaign within an hour of President Biden's announcement on Sunday.

What a Harris presidency would mean for crypto

The Harris team has already shown they are going to break from the Biden administration on issues such as national security, said Sheila Warren, CEO of the Crypto Council for Innovation, in an interview with The Block.

"She is carving a new path forward, and there is no reason to believe that crypto policy is not going to be a part of that," Warren said. "If anything, every piece of evidence that I think is actually concrete shows she is going to have an open mind and make up her own mind about things."

Harris is open to technology and understands job growth, Warren said. "The fact that they're already having conversations, quietly expressing interest, I think, is really telling, and it's a really good signal," she added.

The Blockchain Association CEO said Harris may want to bring in her own people to lead federal agencies, including the U.S. Securities and Exchange Commission.

"If she were to choose to keep Gary Gensler around that would be incredibly disappointing, given all the damage that he's brought on the industry over the past three years. But we are holding out hope that should she be elected, she would bring fresh leadership, particularly into the SEC," Smith said. 

If Trump is elected, there are "high hopes that he's going to put the right people in place at agencies to help create a more pro-crypto-friendly environment," Smith added. That includes Gensler, who Smith said would probably be replaced by one of the SEC's Republican commissioners.

Harris needs to distinguish herself from President Biden, former Biden adviser Vela said.

"Crypto is one of the areas where she can distinguish herself because she's very pragmatic, she's fierce and wicked smart," Vela said.

Vela said he raised the issue of crypto and said it could be an opportunity for her. He said he suggested that her campaign get a roundtable discussion together with some of the crypto industry's leaders.

"They were receptive to my suggestion," he said. "That doesn't mean they're going to do it."

‘A loud minority'

Some in the industry have embraced Trump as their pro-crypto candidate, but CCI's Warren said crypto needs to be bipartisan.

"A loud minority of the crypto industry, especially on social media, is positioning itself as Trump or bust," Warren said.

"A bunch of us, who are actually the majority, but who maybe are not as rabid on social media, have been saying from the beginning of time — and I'm one of these people — we need to be bipartisan," Warren added. "Your personal politics cannot play into this."

Too many people in the crypto industry are "falling prey to the pandering of Donald Trump," said Vela. Trump has advocated for a "lighter approach" to regulating crypto, while Harris has a stricter stance on crypto regulation, according to a post from The Brookings Institution, a nonpartisan think tank.

Some key crypto industry players have thrown their weight, and money, behind Trump.

Gemini co-founders Tyler and Cameron Winklevoss donated $2 million worth of bitcoin to Trump. On X, Cameron Winklevoss said he planned to vote for Trump, calling the former president "pro-bitcoin, pro-crypto, pro-business."

Ryan Selkis, the former Messari CEO, has been particularly vocal about his support for Trump on X. He resigned last week after making harsh public political comments about people voting against Trump.

Overall, executives in the crypto industry are turning to candidates that are pro-crypto in both a future president and in Congress, said Blockchain Association CEO Smith.

"That is happening on both sides of the aisle," Smith said. "I think there are a lot of people who are eager to see what actions or signals Harris makes to kind of establish her position on crypto, but Trump has been very forward-leaning over the past couple of months."