The Official Monetary and Financial Institutions Forum (OMFIF), an independent financial think tank, has suggested that Vice President Kamala Harris and the Democratic Party must urgently develop a comprehensive crypto agenda.
What Happened: According to OMFIF, the crypto community’s natural alignment with small government ideologies has already given Republicans an advantage.
Failing to develop a comprehensive agenda would risk ceding significant political and financial ground to the Republicans, particularly former President Donald Trump, it states.
Trump’s recent promises to accept campaign donations in cryptocurrency, potentially build a national Bitcoin stockpile, and appoint crypto-friendly regulators have further solidified this connection.
The think tank argues that the Democrats’ current stance, characterized by regulatory uncertainty and aggressive enforcement actions by the SEC, has alienated many in the crypto industry.
OMFIF’s editor, Lewis McLellan, notes, “Senior Democrats have certainly done nothing to persuade the crypto community that they want to represent its interests in any way.”
Why It Matters: However, the report suggests that Harris still has an opportunity to regain control of this issue.
OMFIF recommends that the Vice President use the upcoming Democratic National Convention to adopt a more conciliatory approach towards the crypto industry.
This could include supporting existing bipartisan legislation like the Financial Innovation and Technology for the 21st Century bill and the Stablecoins act, which would provide much-needed regulatory clarity.
The think tank emphasizes that embracing crypto policy could attract both votes and campaign donations from the crypto community, potentially making a difference in key battleground states.
Moreover, OMFIF argues that treating crypto as a non-partisan issue would lead to fairer and more robust legislation, benefiting both the industry and the country as a whole.
What’s Next: As the crypto policy landscape continues to evolve, such developments are likely to be a key topic of discussion at Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders and policymakers will gather to explore the future of cryptocurrency regulation and its impact on the broader financial ecosystem.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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