Analysts at Bernstein suggest that Vice President Kamala Harris‘ recent outreach to the crypto industry may be insufficient to sway voters in the upcoming U.S. presidential election.
What Happened: The report indicates that Harris’ campaign is seeking a “reset” with crypto companies, having reached out to prominent firms in the sector.
Bernstein highlights a significant shift in the political landscape concerning digital assets, noting the bipartisan support that cryptocurrencies are beginning to garner.
However, the firm is doubtful that Harris’s late-stage pivot will effectively counter the robust support former President Donald Trump has already established within the crypto community.
“Bernstein believes that while Harris's attempts to engage with crypto firms are noteworthy, they may not be sufficient to alter the industry’s current leanings,” the report states.
This sentiment echoes the growing perception that the Democratic Party’s regulatory actions have alienated a significant portion of the crypto industry, which now views the Trump administration as more favorable due to its clear pro-crypto stance.
The analysts emphasize the importance of timely and substantial policy proposals to win over the crypto sector.
Harris’s recent efforts, which include reaching out to key figures in the crypto industry and proposing a reset in relations, are seen as reactive rather than proactive.
“The financial heft of the industry is part of the reason it has growing appeal in Congress,” said Lee Reiners, a lecturing fellow at the Duke Financial Economics Center, in a statement to Semafor. “Politicians, like everyone else, respond to incentives. So certainly, you would want some of that money, or at the very least, you wouldn't want that money to be spent against you.”
Also Read: SEC Aims To Amend Binance Complaint, Focusing On Third Party Crypto Asset Securities
Why It Matters: This analysis aligns with recent developments where crypto-focused political action committees, such as Fairshake, have amassed significant financial resources.
Fairshake has raised over $200 million to support crypto-friendly candidates, becoming the largest Super PAC in the 2024 election cycle..
This financial clout is attracting attention from politicians on both sides of the aisle.
Bernstein’s projects a cautionary outlook for Harris’s strategy.
While the Democratic campaign’s overtures to the crypto industry are a step in the right direction, they may fall short without more concrete policy shifts and actions that address past grievances.
As the presidential race heats up, it remains to be seen whether these efforts will be enough to change the current dynamics in favor of the Harris campaign.
What’s Next: As the political landscape surrounding cryptocurrency continues to evolve, these critical discussions will take center stage at Benzinga’s Future of Digital Assets event on Nov. 19.
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