Harris's campaign aims to repair democratic ties with crypto sector

In a significant move to mend relations with the cryptocurrency sector, Vice President Kamala Harris’s advisers have reached out to top crypto companies, to reset the strained ties between her Democratic party and the crypto industry.

According to FT, members of Harris’s team have recently contacted individuals connected to major crypto companies. These efforts include outreach to leading cryptocurrency exchange Coinbase, stablecoin company Circle, and blockchain payments group Ripple Labs.

Rethinking stance on digital assets

The goal is to foster a more constructive dialogue and establish a regulatory framework conducive to the industry's growth. This outreach comes as the crypto industry has increased support for her rival, Donald Trump. This initiative also follows mounting criticism of the Biden administration’s stance on digital assets.

This strategic shift comes in the wake of a letter signed by Democratic members of the US House of Representatives and 2024 candidates. The letter calls for the party to reconsider its approach to the digital asset industry, highlighting the importance of moving away from perceived hostility.

Advisers to Harris’s campaign have reportedly clarified that the initiative to reconnect with the crypto sector is not primarily driven by a desire to secure electoral contributions. Instead, the focus is on building a positive relationship that can pave the way for a sensible regulatory framework.

Such a framework would support the growth and stability of the digital asset class, benefiting the broader financial ecosystem.

Harris’s outreach is also reportedly part of a broader effort to reshape the perception of the Democratic Party among business leaders. Harris’s campaign aims to counter the notion that Democrats are anti-business, a sentiment that has grown amid the Biden administration’s focus on antitrust actions against tech companies.

By emphasizing a message of being "pro-business, responsible business," Harris seeks to assure the industry of the party's commitment to fostering a healthy business environment.

Crypto's emerging role in US politics

Trump, who once expressed skepticism towards cryptocurrencies, has recently emerged as a strong advocate for the sector. He delivered the keynote speech at a Bitcoin conference in Nashville on July 27, highlighting his newfound support for the industry.

This shift has garnered him substantial backing from the crypto community, making the sector an important source of funding for his campaign.

Pro-crypto super PAC Fairshake has raised over $200 million from prominent backers, including Coinbase, Ripple, and venture capital firm Andreessen Horowitz. Meanwhile, Trump’s re-election campaign has seen roughly $3 million in cryptocurrency since the candidate announced he would accept digital assets.

This financial support underscores the role the crypto industry is playing in the upcoming US election.