What does it mean for Kamala Harris’s campaign when a virtual town hall designed to woo the crypto crowd instead leaves them feeling more aligned with Donald Trump?
How it all started?
The recent virtual town hall organized by the ‘Crypto For Harris’ campaign, designed to rally support for Kamala Harris’ potential presidency from the digital asset community, fell flat on its face.
Touted as a key affair,’ the event left many in the industry unimpressed and even sparked backlash. Prominent figures like Gemini co-founder Tyler Winklevoss didn’t hold back, calling it a “clown show.”
Over 90 minutes, top-tier Democratic figures, including Senate Majority Leader Chuck Schumer, Senators Debbie Stabenow and Kirsten Gillibrand, and tech mogul Mark Cuban, took the stage.
Despite their efforts, the event was largely seen as a “missed opportunity” for the Vice President to solidify her stance on crypto.
Instead, many industry leaders found themselves more aligned with former President Donald Trump, signaling potential fractures within the party’s approach to digital assets.
Notably absent from the event were Harris herself and her campaign staff, and only fueled criticism.
Unpacking the missteps of the ‘Crypto For Harris’ town hall
The absence of Harris was the elephant in the room, and it did not go unnoticed. Many viewers tuned in, eager to glimpse Harris’s potential crypto policy.
There was a strong desire to see if she would distance herself from the Biden administration’s stringent stance on crypto, particularly the aggressive tactics employed by the SEC under Gary Gensler.
But instead of clarity, the audience was left with more questions than answers.
Schumer, a key Democratic figure, did his best to fill the void. His speech was well-prepared, and he positioned himself as a newly minted crypto ally, pledging to push for ‘sensible’ crypto legislation before the year’s end.
Schumer’s rhetoric was strong, insisting that crypto is “here to stay no matter what” and suggesting the need for balanced regulation that promotes innovation while protecting consumers.
He even took a veiled jab at his colleagues, hinting at the spectacle-driven politics that some, like Senator Elizabeth Warren, are known for.
Meanwhile, Cuban’s brief appearance did little to elevate the discussion, as his critique of the Republicans’ stance on crypto fell flat among viewers.
The town hall format itself also drew criticism. Jake Brukhman, founder and CEO of CoinFund, expressed his frustration, stating to Fox Business, ‘I thought a town hall was for hearing people’s opinions…instead we got a few lectures of the participants’ views on crypto and where it should go politically.’
Brukhman’s sentiment was shared by many who felt the event lacked the interactive element that typically defines a town hall. The use of pre-recorded messages from figures like Senators Gillibrand and Schiff only served to diminish the event’s authenticity.
‘I was hoping to hear about Harris’s crypto policy and for the Democrats to address how they’re going to fix the issue of crypto firms being de-banked,’ said Custodia Bank CEO Caitlin Long.
Another key issue — the SEC’s hostile treatment of the industry under Gensler — was left unaddressed, further aggravating an already skeptical audience.
In the end, the event appeared to be a missed opportunity, with many industry leaders and participants feeling more disconnected than ever from a campaign that seems increasingly out of touch with the concerns of the digital asset community.
What are Harris’s odds, and what does it mean for crypto?
Harris may have had a bumpy town hall, but her odds of becoming the next U.S. President are anything but.
According to Polymarket, the crypto-powered betting platform, Harris is currently the favorite to win the 2024 election, holding a 53% chance against Republican frontrunner Trump, whose odds have slipped to 44% in recent weeks.
Interestingly, just as Harris edges ahead in the polls, the price of Bitcoin (BTC) has taken a hit. Coincidence? Bernstein analysts don’t think so.
In a recent report, they suggested that market sentiment is interpreting a Trump win as bullish for crypto, while a Harris win might be bearish—at least in the short term, hinting at the uneasy relationship between the crypto community and the current administration, a relationship that Harris has yet to address directly.
However, the Harris campaign isn’t completely out of the crypto loop. Her team recently brought on board two key advisers with significant ties to the industry.
David Plouffe, an advisor to former President Barack Obama, previously served on Binance’s global advisory board.
Meanwhile, Brian Nelson, who worked at the Treasury Department’s Office for Terrorism and Financial Intelligence, was involved in enforcement actions against Binance for breaking sanctions and anti-money laundering laws.
So, what does this all mean for crypto? On one hand, Harris’s rising political fortunes could signal more regulatory scrutiny, especially if her administration continues the hardline approach seen during the Biden years.
On the other hand, her close ties to industry insiders like Plouffe and Nelson could hint at a more nuanced approach—perhaps a balancing act between regulation and innovation.
So, as we head into the 2024 election, the crypto community might find itself in a peculiar spot—caught between the thrill of a political showdown and the uncertainty of what comes next.
Will a Harris presidency mean tighter regulations, or could it lead to a new era of crypto innovation? Only time will tell.
