Kamala Harris could spell the end of Democrats’ hardline stance on cryptocurrencies, but it’s too early to say for sure

In President Biden, the crypto world has long faced a fierce critic whose administration has blocked legislation to help the industry and focused almost entirely on enforcement. Now, after a historic weekend in which Biden withdrew his reelection bid, the crypto industry must now assess his vice president, Kamala Harris, who is almost certain to represent the Democrats on the 2024 ticket. Would crypto face more of the same under a Harris presidency — or would she take a softer stance?

Harris hails from the nation’s tech capital, California. While she went after social media platforms for sexual harassment during her time as the state’s attorney general, she also cultivated a close relationship with executives like Meta’s Sheryl Sandberg, leading to a reputation as a pro-business politician. Many in crypto hope she will bring the same vision to the campaign trail and potentially the White House.

“Given the increasing bipartisanship we’re seeing in Congress, I’m hopeful that Harris’ presidency will continue on this path,” Adam Minehardt, head of global government relations at the Stellar Development Foundation and former chief of staff to Nydia Velázquez (D-N.Y.), said in a text message to Fortune.

Radical change

The Biden administration may not have started out with an anti-crypto bent, but the collapse of FTX and the fallout from Sam Bankman-Fried’s political donations have set off a chain reaction of hostility. A series of congressional hearings in late 2022 and early 2023 highlighted the risks of blockchain platforms to consumers and government agencies headed by Biden appointees, such as the chairman of the Securities and Exchange Commission Gary Gensler has taken legal action against some of the biggest players in the industry.

Despite the chilly atmosphere, Democrats and centrist Republicans pushed forward with several landmark pieces of legislation, including a sweeping overhaul regulation of market structure of the House Financial Services Committee, as well as a bill to repeal a controversial SEC bulletin which has received broad bipartisan support. Meanwhile, former President Trump has embraced the blockchain sector, including a scheduled appearance at the Bitcoin conference later this week. His vice presidential pick, Sen. J.D. Vance (R-Ohio), has also carved out a niche as a crypto advocate and personally it has Bitcoin.

Harris may have risen to become a California senator — and then vice president — as a pro-tech politician, but she hasn’t publicly taken a stance on blockchain regulation. One cryptocurrency lobbyist, who spoke to Fortune on the condition of anonymity to speak candidly about the evolving political dynamics, described the situation as “up in the air.” They said all eyes will be on Harris’s pick for vice president — as well as which advisers she surrounds herself with.

When Biden became president, many of his economic advisors came from the progressive camp and worked specifically with Sen. Elizabeth Warren (D-Mass.), a vocal critic of cryptocurrencies. Harris doesn’t have the same connections. A crypto policy adviser and former Biden administration official, who spoke to Fortune on condition of anonymity, said Harris has been largely excluded from economic policy. “She doesn’t have the same rapport that Biden and Warren had, or even the same closeness to Warren’s team,” they said. Still, Warren endorsed Harris shortly after Biden withdrew his candidacy on Sunday.

If Harris is elected, the question will be whether she seeks to appoint a new SEC chair, with Gensler’s term set to end in 2026, though she could push for a clean slate. The crypto lobbyist said it would be the “safest path” to keep the Biden administration’s infrastructure in place.

While Harris didn’t even secure the Democratic nomination, a blockchain trade group — the Digital Chamber — took the opportunity to publish a letter asking her to support crypto legislation. “We believe this technology is nonpartisan and the Democratic Party should also champion these innovations,” they wrote.

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