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Vice President Kamala Harris plans to aid and abet policies that foster growth in the crypto and digital asset industry while preserving consumer protections, a report from Bloomberg found, citing a senior campaign adviser. The stance is aimed at courting a nascent crypto sector that is increasingly gaining political clout.

Brian Nelson, a senior policy adviser to Harris’ campaign, outlined the vice president’s approach during a roundtable discussion at the Democratic National Convention.

“She’s going to support policies that ensure that emerging technologies and that kind of industry can continue to grow,” Nelson said, in response to questions about Harris’ efforts to engage the crypto community.

The responses underscore the campaign’s attempts to strike a balance between embracing innovation and implementing appropriate safeguards for an industry that has suffered high-profile corporate collapses that have led to mass liquidations and bankruptcies. Earlier in March, Sam Bankman-Fried, the founder and former CEO of FTX, was sentenced to 25 years in prison for his role in one of the largest financial frauds in U.S. history.

Nelson stressed the need for “stable rules, traffic rules,” which the sector sees as crucial to its development.

Reducing bureaucracy and regulatory red tape

Harris herself referenced this balanced approach in a recent campaign speech in North Carolina, though she didn’t explicitly mention digital assets or crypto. The vice president pledged to “focus on cutting unnecessary bureaucracy and unnecessary regulatory red tape” while “fostering innovative technologies (while) protecting consumers and creating a stable business environment with consistent and transparent rules of the road.”

The crypto industry has been chafing under what it sees as onerous regulations from the Biden administration. In response, the sector has been trying to expand its political influence, including through substantial campaign donations. The shift comes as former President Donald Trump, Harris’ opponent in the upcoming election, has been courting crypto enthusiasts with promises of more crypto-friendly regulations.

Trump has promised to fire SEC Chairman Gary Gensler, whose term runs until 2026, and appoint regulators sympathetic to the crypto industry. He has also proposed creating a presidential advisory council for the crypto industry and developing a stablecoin framework to bolster the dominance of the US dollar while blocking the prospects of a US-based CBDC. Such an approach has garnered support from prominent crypto figures such as billionaire investors Cameron and Tyler Winklevoss.

Trump could worsen inflation, Harris remains unclear

Rohini Kosoglu, Harris’ former domestic policy adviser, compared the vice president’s economic approach to Trump’s, saying Harris would provide more certainty for businesses.

“Businesses are concerned about the chaos of a second Trump administration and what that means for not knowing the rules of the road and not knowing whether they will have the opportunity to grow and thrive in an economy,” Kosoglu noted.

Trump has promised to extend expiring tax breaks and impose broad tariffs on both U.S. allies and adversaries if he is re-elected. Critics warn that these policies could exacerbate inflation and disrupt global trade, directly impacting crypto markets. Nelson highlighted the uncertainty that Trump’s proposed tariffs create for businesses.

“If I am a businessman, I don’t know how to run my business in such an environment,” he said.

Harris faces the challenge of quickly enacting her policy agenda after President Biden’s exit from the race. The economy remains a central issue for voters and a potential liability for Harris. High inflation has fueled dissatisfaction with the administration’s economic management, overshadowing efforts to boost infrastructure investment and domestic manufacturing growth.

With less than three months until Election Day, Harris’ team will need to articulate a clear vision for balancing crypto industry growth with consumer protections. Such an approach would need to differentiate her platform from Trump’s while also addressing concerns about regulatory overreach raised by major players in the crypto industry.

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