Key Takeaways
- President Biden has officially exited the presidential race and is endorsing Vice President Kamala Harris as his successor.
- Vice President Harris is now rallying Democratic support, leveraging Biden’s established campaign infrastructure and financial resources to bolster her candidacy.
- Harris is anticipated to maintain the policies of the Biden administration, given their shared political objectives and aligned bases.
On July 21, in an unexpected twist that has dramatically reshaped the White House race, U.S. President Joe Biden, at the age of 81, decided to end his re-election campaign and endorsed Vice President Kamala Harris as the Democratic nominee to succeed him.
With the presidential race heating up and the U.S. crypto industry becoming more politically relevant than ever, how will this handoff impact digital assets? Interestingly, following the news of Biden’s endorsement, Bitcoin rebounded from its July crash, surging above $68,000 .
President Biden Ends Re-election Bid
President Biden reportedly yielded to intense pressure from his Shortly after Biden’s announcement, Vice Pclosest allies amid growing concerns about his ability to compete against former President Donald Trump due to his age and health.
Shortly after President Biden’s exit, Vice President Kamala Harris announced her intention to seek the Democratic nomination, and many in the Democratic Party quickly rallied around her following the President’s approval.
In his statement , President Biden expressed:
“While it has been my intention to seek re-election, I believe it is in the best interest of my party and the country for me to step aside and concentrate fully on fulfilling my duties as president for the remainder of my term.”
At the time of writing, Biden’s campaign had officially rebranded to “Harris for President,” signaling her takeover of the campaign’s extensive political apparatus, which includes over 1,000 staff members and a $96 million fund. Interestingly, this fund wouldn’t have been accessible to any other Democratic nominee except the Vice President.
Biden’s Crypto Stance at a Crossroads
During his four-year tenure, President Biden has consistently shown reluctance to support Bitcoin and the broader crypto industry. His administration has repeatedly pushed for congressional action against digital assets, asserted they had no fundamental value, and were subject to fraud. Just recently, on May 31, President Biden vetoed a bill that would have allowed highly trusted financial institutions to custody Bitcoin and other cryptocurrencies.
The Biden Administration has even been critical of Bitcoin and Proof of Work mining, according to a report recommending a Central Bank Digital Currency (CBDC) instead of existing cryptocurrencies. The report highlighted the potential benefits of a U.S. CBDC, suggesting it could give the Federal government more comprehensive control over citizens’ finances. However, according to Pantera Capital, as crypto policies gain traction in the upcoming elections, Biden has shown signs of warming up to the sector, and Vice President Harris could follow suit.
Harris May Maintain Status Quo on Crypto Policies Amid Tight Race
Although not outspoken on digital currencies or blockchain technology, Harris could maintain the policies from Biden’s administration due to their aligned political bases. Despite her Silicon Valley ties, her donor base shows little interest in digital assets, suggesting she may continue to distance herself from cryptocurrency.
As a California native and one of the more tech-friendly Democrats in recent years, Harris’s apparent distance from cryptocurrency could be seen as a deliberate stance against the technology. Should this be the case, she might garner support from anti-crypto constituencies as her campaign progresses.
Furthermore, the close margins in support between Trump and Biden before Biden withdrew highlight the precarious position Harris might find herself in. As she seeks to solidify her candidacy, the strategic choice to either embrace or reject pro-crypto policies could significantly impact her campaign’s dynamics against Trump.
Trump Campaigns on ‘Americanizing’ Bitcoin; VP Vance Proposes Crypto Protection
While the Democrats appointed their new nominee, Donald Trump, on the other hand, is aggressively promoting his pro-cryptocurrency stance. He has appeared at several Bitcoin conferences, branding himself as the potential first “crypto President” and promising to protect the 50 million Americans who own cryptocurrencies from what he calls “Elizabeth Warren and her goons.”
His Vice President pick, JD Vance, is also a cryptocurrency enthusiast. Vance’s financial disclosures to the Senate reveal that he holds between $136,000 and $390,000 in cryptocurrencies. Moreover, he has advocated for the crypto industry by introducing legislation aimed at preventing traditional banks from severing ties with cryptocurrency firms and exchanges.
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