Kamala Harris may continue the Biden administration's crypto crackdown

Kamala Harris, the Vice President of the United States, aims to maintain the Biden administration’s stringent stance on cryptocurrency regulation.

Harris is reportedly working with Brian Deese and Bharat Ramamurti, two former economic advisers of the Biden administration, who have heavily opposed the previous Clarity for Payment Stablecoins Act of 2023 for being too permissive for issuers.

Harris’ choice of economic advisers could signal her intention to continue the Biden administration’s hostile crypto regulatory approach, according to Alex Thorn, the head of research at Galaxy, who wrote in an Aug. 13 X post:

“New evidence that Kamala Harris will continue the crypto crackdown. Her advisor choice suggests she will keep Biden’s hostile attitude to crypto.”

Harris is preparing to unveil plans regarding her economic policy agenda in a mid-August speech, which could offer investors more cues about her approach toward cryptocurrency regulation.

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Were Deese and Ramamurti part of ‘Operation Chokepoint 2.0’?

In March 2023, the US banking system took a hit following the sudden collapse of Silicon Valley Bank and the voluntary liquidation of Silvergate Bank. Signature Bank was also forced to close operations by New York regulators on March 12, two days after Silvergate Bank’s liquidation.

The sudden collapse of the three crypto-friendly US banks was called “Operation Chokepoint 2.0” by crypto venture capitalist Nic Carter, who saw it as a “coordinated effort” to unbank the crypto industry.

In a concerning sign for future crypto regulation, Deese and Ramamurti were allegedly part of the operation, according to Galaxy’s Thorn, who wrote:

“Deese and Ramamurti are two key architects of the Biden admin’s anti-crypto crusade, including chokepoint 2.0.”

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Bharat is the ‘White House’s top crypto critic’

Popular American business magazine Fortune has previously referred to Bharat as the “White House’s top crypto critic,” who serves as a National Economic Council Deputy Director in the White House until Oct. 2023.

This is another reason why Harris’ choice of economic advisers spells a tougher stance for the crypto industry, added Thorn:

“People are policy at the end of the day, and if Brian Deese, Bharat Ramamurti, Wally Adeyamo, et al are set to lead economic policy in a Harris/Walz administration, it’s very unlikely the administration will soften its stance on crypto.”

The announcement comes a week after Harris revealed Minnesota Governor Tim Walz as her running mate for the 2024 US presidential election on Aug. 6.

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