Vice President Kamala Harris recently made a surprising pivot to align with the crypto industry, but analysts at Bernstein suggest this move is unlikely to influence key voters in the upcoming U.S. presidential election.
Reactive Approach
In an attempt to reset her relationship with the crypto industry, Harris has been actively reaching out to major companies in the sector. This initiative comes amid a notable political shift, with digital assets gaining bipartisan support.
However, Bernstein analysts are skeptical about the potential impact of Harris’s outreach. They believe these efforts may not be enough to compete with the substantial support former President Donald Trump has garnered from the crypto community.
According to Bernstein:
“The efforts by Harris to connect with crypto companies are noteworthy… [but] may not be sufficient to alter the current trend in the industry.”
Her recent activities are seen as more reactive than proactive, lacking timely and significant policy changes to win over the industry’s support.
The report highlights that the Democratic Party’s regulatory stance has alienated many in the crypto sector, who now view the Trump administration as more favorable due to its clear pro-crypto policies.
Strong Support from Trump ( Bitcoin )
Trump has attracted significant support from the crypto industry through a combination of pro-innovation rhetoric, deregulation policies, and direct engagement with key industry figures.
The Trump administration’s market-friendly principles and low corporate tax policies have aligned well with the decentralized nature of cryptocurrencies.
Trump’s outreach to crypto companies and substantial contributions from crypto-focused political action committees have further solidified his position as a pro-crypto candidate, presenting a stark contrast to the Democratic Party’s perceived restrictive approach to crypto regulation.
This multifaceted strategy has helped Trump build a strong support base within the crypto community, enabling him to raise $25 million at the Bitcoin Nashville 2024 conference last week, where he was the keynote speaker.
David Bailey, CEO of Bitcoin Magazine, noted that this amount represents the second-largest fundraiser ever conducted by Trump’s campaign. He also criticized Senator Elizabeth Warren for making the Democratic Party adopt an anti-crypto stance, effectively ending their chances in the election.
Financial Influence
Bernstein’s analysis aligns with the rise of crypto-focused political action committees like Fairshake. This committee has raised over $200 million to support pro-crypto candidates since its inception, becoming the largest Super PAC in the 2024 election cycle.
The financial influence of the crypto industry is attracting the attention of politicians across the political spectrum.
Lee Reiners, a lecturer at Duke University’s Financial Economics Center, commented:
“The financial influence of the crypto industry is one of the reasons for its increasing impact in Congress. Politicians respond to incentives, and securing financial support from this sector is crucial.”
Despite these developments, Bernstein remains cautious about Harris’s strategy, believing that while her campaign’s outreach efforts to the crypto industry are a positive step, they may not be enough without specific policy changes and actions addressing past grievances.
This view is shared by others, including Gemini founder Tyler Winklevoss, who expressed similar skepticism about Harris’s pivot. He stated that the administration needs to do more than just talk to change public perception.
The competition between Harris and Trump is intensifying as election day approaches, with Harris reportedly leading Trump in some swing states. The Republicans and former President Donald Trump appear caught off guard by President Joe Biden’s decision to not run for re-election, leaving them without a clear strategy to counter Vice President Harris.
