Vice President Kamala Harris's advisers are reaching out to top crypto companies to mend strained relations, Senator Cynthia Lummis has proposed a strategic Bitcoin reserve to bolster the nation's economy, and Gemini co-founder Tyler Winklevoss has called for clarity on SEC leadership ahead of the upcoming election.
Kamala Harris's Campaign Reaches Out to Crypto Companies in a Bid to Mend Ties
United States Vice President Kamala Harris’s advisers have reached out to top crypto companies to reset the strained ties between the Democratic Party and the crypto industry.
According to the Financial Times, 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 firm Ripple Labs.
The goal is reportedly 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, Republican Party nominee and former President Donald Trump. This initiative also follows mounting criticism of President Joe Biden’s administration’s stance on digital assets.
This 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 the Harris 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.
The Harris campaign’s outreach is also reportedly part of a broader effort to reshape the perception of the Democratic Party among business leaders. The 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. This broader strategy reflects an attempt to recalibrate the Democratic Party's stance, making it more palatable to business interests and innovative sectors such as cryptocurrency.
Harris’s advisers are reportedly working to build bridges with key figures in the crypto industry, emphasizing the potential for collaboration rather than conflict. This approach aims to create a mutually beneficial relationship where the growth of the crypto sector can be supported by a clear and fair regulatory framework, ensuring both innovation and consumer protection.
Crypto’s Emerging Role in US Politics
Trump, who once expressed skepticism toward cryptocurrencies, has recently emerged as a strong advocate for the sector. He delivered a keynote speech at the Bitcoin 2024 conference in Nashville, Tennessee, on July 27, highlighting his 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 reelection campaign has seen roughly $3 million in cryptocurrency donated since he announced it would accept digital asset donations.
The increasing political influence of the crypto sector is a strong indication of its growing importance in the US economy and political landscape. As digital assets become more integrated into mainstream finance, their role in political campaigns and policy-making is expected to expand.
The outreach from Harris’s campaign to the crypto sector signifies a potential turning point in the relationship between the Democratic Party and the digital asset industry. By engaging with industry leaders and advocating for a balanced regulatory approach, Harris aims to position the Democratic Party as a supporter of innovation and economic growth.
If successful, this strategy could mitigate some of the criticisms aimed at the current administration’s handling of crypto regulation and attract more bipartisan support for the industry. As the 2024 election approaches, the stance of major political figures on digital assets will likely continue to evolve, reflecting the growing significance of cryptocurrencies in both the economy and the political arena.
US Senator Cynthia Lummis Proposes Strategic Bitcoin Reserve Bill
Senator Cynthia Lummis has introduced a bill advocating for the creation of a “strategic Bitcoin reserve.” The bill suggests that the US government acquire 5% of the world’s Bitcoin supply and hold it for a minimum of 20 years, with the aim of leveraging the asset to reduce national debt.
“It can be used for one purpose, to reduce our debt,” Lummis declared during her keynote speech at the Bitcoin 2024 conference on July 27 in Nashville, Tennessee.
Lummis explained that, if passed, the plan would be implemented over five years, during which the US government would acquire one million Bitcoin (BTC), which represents roughly 5% of the total supply of 21 million Bitcoin. At the time of her announcement, Bitcoin was priced at $68,105, meaning the proposed acquisition would cost approximately $68.1 billion, according to data from CoinMarketCap.
The strategic reserve would initially start with the 210,000 Bitcoin mentioned by former President Trump in his preceding keynote address. These Bitcoins would be stored in geographically diverse vaults to ensure security and accessibility.
“This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a reserve, stored in geographically diverse vaults, and that’s only the beginning,” Lummis stated.
Senator Lummis emphasized the financial prudence of this move, highlighting that the funds for the Bitcoin purchase are currently available but are held in US dollars and other assets that are subject to an annual debasement of at least 2%. By converting these funds into Bitcoin, she argues, the US can hold an asset that is expected to appreciate in value over time.
“We have the money now, but we will no longer be holding it in US dollars and assets that are designed to debase at least 2% per year. We’ll be holding it in an asset that will grow in value,” she added.
Lummis's Standing in the Crypto Community
Senator Lummis has long been a proponent of cryptocurrency, and her pro-crypto stance has earned her a positive reputation within the industry. Her speech at the Bitcoin 2024 conference was met with enthusiasm, with attendees applauding her vision.
“This is the solution, this is the answer, this is our Louisiana purchase moment. Thank you, Bitcoin!” Lummis exclaimed, drawing parallels between her proposal and historical landmark investments.
Lummis's proposal comes on the heels of a high-profile address by former President Trump, who has also shown strong support for cryptocurrency. Trump announced his intention to make the US the "crypto capital of the world" if he is elected in November, aligning with Lummis's vision of leveraging digital assets to enhance the country's economic standing.
The proposal also follows Lummis's recent report criticizing President Biden’s administration’s proposed 30% excise tax on the energy consumed by Bitcoin miners. Released on July 23, the report titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America” argues that such a tax would undermine the benefits of Bitcoin mining infrastructure to the US energy grid.
The introduction of the strategic Bitcoin reserve bill has sparked significant interest and debate within both the political and crypto communities. Proponents see it as a visionary step towards integrating digital assets into national economic strategies, while critics raise concerns about the volatility and regulatory challenges associated with cryptocurrencies.
BlockTower Capital, a prominent investment firm in the crypto space, has voiced skepticism about the feasibility of establishing a US Bitcoin strategic reserve by 2028, citing a “10:1” odds against it. Nevertheless, the conversation ignited by Lummis’s proposal demonstrates the growing recognition of Bitcoin and other cryptocurrencies as integral components of the global financial system.
Tyler Winklevoss Calls for Clarity on SEC Leadership Ahead of US Election
In related news, Gemini co-founder Tyler Winklevoss has urged the United States government to clarify who will lead the Securities and Exchange Commission (SEC) ahead of the upcoming US election. His statement, made in a detailed post on X on July 26, highlights the need for the crypto industry to know its regulatory overseers before voters head to the polls.
“We should demand to know, among other things, who the next chair of the SEC is before we head to the ballot box,” Winklevoss declared. This call to action comes amid heightened tensions between the crypto industry and the current administration, exacerbated by Winklevoss and his brother Cameron — also a Gemini co-founder — being uninvited from a recent White House event due to their endorsement of Donald Trump.
Winklevoss’s remarks show what he perceives as the Biden administration's adversarial stance towards the cryptocurrency sector. “The Biden-Harris Administration had an opportunity to try and reset the relationship with the crypto industry this week,” he claimed, referencing their exclusion from the White House event. He argued that clear communication about future SEC leadership is essential for establishing a bipartisan approach to crypto regulation.
“This is table stakes, and this is how you make crypto bipartisan. No more guessing. No more hoping. No more surprises. Our industry should not tolerate any possibility of a repeat of the last 4 years,” Winklevoss added.
Gary Gensler, who has served as the chair of the SEC since February 2021, has been a polarizing figure in the crypto world. His tenure has been marked by a series of statements and regulatory actions that many view as anti-crypto. These include aggressive enforcement measures and a cautious approach to approving cryptocurrency-based financial products. With his term set to end in June 2026, the question of his successor is of paramount importance to stakeholders in the digital asset space.
Winklevoss’s vision for the future of cryptocurrency regulation is one of mainstream acceptance and integration. He expressed a desire for politicians to eventually skip crypto conferences altogether, suggesting that the industry should become so established that it no longer requires debate or validation from political figures. “Like going to a conference on whether or not email or the Internet should be legal or allowed,” he stated, illustrating his belief that cryptocurrency should be as uncontroversial and universally accepted as the internet.
Political Engagement at Bitcoin 2024 Conference
Winklevoss’s comments were made during the Bitcoin 2024 conference in Nashville, Tennessee, which featured several notable political figures. Independent presidential candidate Robert F. Kennedy Jr. delivered a speech extolling Bitcoin’s potential to enhance the US economy and American way of life. He pledged to sign several executive orders on his first day in office to support the cryptocurrency sector.
Other prominent speakers included Senator Lummis and Senator Tim Scott, both of whom have been vocal supporters of the crypto industry. Former US President Trump also headlined the event, signaling his continued engagement with and support for the digital asset space.
As the US election approaches, the cryptocurrency industry is at a critical juncture. The call by Tyler Winklevoss for clarity on SEC leadership reflects a broader demand for stability and predictability in regulatory frameworks. By advocating for transparent and consistent oversight, industry leaders hope to foster an environment that supports innovation and growth while protecting investors and maintaining market integrity.
