Crypto Coalition Urges Biden, Harris To Take ‘Meaningful Steps’ Toward Clearer Regulations

Key Takeaways

• The CMIC is urging the Biden administration to establish clear regulatory guidelines for digital assets.
• The CMIC emphasizes the need for regulations that not only protect consumers but also promote financial stability and technological leadership in the digital economy
• Kamala Harris is trying to rebuild her relationship with the crypto industry as the presidential election approaches.

Dems Urged To Take Steps On Crypto Regulations

On Aug. 7, 2024, the CMIC sent a letter to President Joe Biden and Vice President Kamala Harris, highlighting the need for clear regulatory guidelines. The group emphasized that such guidelines are crucial for the nation.

This correspondence arrives as the current administration approaches the end of its term, with the presidential election on the horizon.

The CMIC cited President Biden’s 2022 Executive Order on digital assets as a pivotal step toward improving consumer protection and financial stability while also exploring the potential for a US central bank digital currency (CBDC).

The coalition also highlighted research indicating that digital currency payments will likely become ubiquitous. In fact, 90% of merchants expect widespread adoption.

This aligns with current trends, as over 16% of Americans have already engaged with digital assets. Moreover, large corporations are increasingly adopting distributed ledger technology to enhance their operations.

The letter pointed out the growing regulatory focus on digital assets, noting that several major economies, such as the EU, UK, Japan, Singapore, UAE, and Hong Kong, are developing or have already established clear legal frameworks for this sector.

It said, “The United States stands out in lacking both a federal payments and digital asset regulatory framework.”

Call To Action

“We encourage your Administration to take meaningful steps to outline clear rules of the road, rather than relying solely on enforcement, to foster a “compliance mindset” in the wider use of digital assets, particularly among non-US actors,” the coalition wrote in the letter.

According to the coalition, this approach mirrors how the US established international norms in illicit finance and sanctions policy. And it may gain worldwide respect from foreign banks and companies.

“Similarly, clear regulations around digital assets will protect American consumers while promoting regulated dollar services and fostering the development and adherence to US norms and democratic principles in the digital economy. As long as dollar-denominated assets remain the currency of the internet, the absence of legislation providing a path to compliance will only encourage further and more inventive non-compliance.”

The coalition hopes “to see your Administration work with Congress to enact such foundational legislation this year. Missing the opportunity to make law would be a mistake that will be noticed at home and abroad. CMIC and its members stand ready to serve as a resource on behalf of regulated and responsible American industry.”

Harris’ View On Crypto

While Donald Trump has embraced a pro-crypto stance, Democratic nominee Kamala Harris has yet to share her position on the industry publicly.

Nevertheless, Kamala Harris is reportedly working to “reset” her relationship with crypto companies and their supporters, many of whom have shifted to the Republican Party. In contrast, President Biden, Treasury Secretary Janet Yellen, and SEC Chair Gary Gensler have criticized cryptocurrency as a speculative scam.

Sources  close to Harris’s campaign suggest her outreach to the crypto sector primarily focuses on fundraising during this critical honeymoon period. However, she must navigate her connections to Silicon Valley carefully. This, particularly given her ties to the tech industry through her brother-in-law, former US Attorney Tony West. The latter was chief counsel at Uber and is now a campaign adviser.

As a senator, Harris advocated for boosting the budget of the US Digital Service, which manages initiatives like implementing a dollar-backed digital currency. This concept is distinct from private cryptocurrencies, similar to China’s use of the digital renminbi. “I hope to see her support the ideas of my friend,” Cornell professor Bob Hockett, on using digital dollars for targeted quantitative easing or tackling tax evasion.

Furthermore, a new pro-Kamala Harris advocacy group, “Crypto for Harris ,” is set to host a virtual town hall next week. It will feature a speaker lineup that includes left-leaning billionaire entrepreneur Mark Cuban. SkyBridge Capital founder Anthony Scaramucci  and several Democratic House members are also expected to join.

About the Author

Giuseppe Ciccomascolo

Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors. Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.

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