Kamala Harris Crypto Regulation Plans Spark Criticism—But Also Optimism #CriptoNews

Seeking to boost support among Black male voters, the campaign of the Democratic Party presidential nominee Kamala Harris released an outreach agenda this week—which included a promise for cryptocurrency regulation to protect Black men who invest in digital assets.

It was the most concrete statement to date from the current Vice President, whose truncated campaign—since taking over for Joe Biden in July—has put far less focus on crypto than that of her Republican rival, former President Donald Trump.

The Harris campaign’s move this week was met with mixed reactions. While some crypto investors and industry members praised the sharper language on crypto regulation from Harris, others criticized the framing as being specifically about Black men.

“It was overdue; a lot of people were waiting for some announcement of support from Kamala Harris to the crypto community and investors,” Dr. Ali Emdad, Director of the Center for the Study of Blockchain and Financial Technology at Morgan State University, told Decrypt.

“Research shows that more than a quarter of Black Americans own crypto, compared to around 15% of whites, so it is more accepted,” Dr. Emdad continued. “People were waiting, and this was, I think, a little bit late—but regardless, it was needed for that announcement to be made.”

Regulatory clarity can foster innovation and help Black communities lead in emerging technologies, Dr. Emdad said—though he added that it’s important for community leaders to actively participate in the development of the policy to ensure it meets their specific needs.

“Some will be skeptical due to historical mistrust of financial systems, but others will welcome this as a step toward broader economic empowerment,” he added. “It’s like with any major proposal—there will be skepticism, open support, and demands for more thorough action.”

But not everyone is convinced. Some crypto industry members saw the timing of Harris’ announcement as being purely politically motivated, particularly as the initial buzz around her campaign has cooled in the run-up to Election Day.

An ABC/Ipsos poll of likely voters Wednesday gave Harris a 51% chance of winning, compared to Trump at 48%—narrower than before. Meanwhile, crypto bettors on Polymarket currently give former Trump a 60% chance of victory compared to Harris at around 40%.

“I would have believed her two years ago, not during an election year,” NFTCLT co-founder and Chief Marketing Officer Tony Bravado told Decrypt.

“When I hear phrases like ‘supporting Black men,’ it seems like pandering,” he continued. “Are they really focusing on the entire Black community, or just trying to win over a specific group of Black men who are getting into crypto? To me, it feels a bit out of touch.”

Bravado and his partner, Shana Douglass, travel around the country, holding events at schools and universities, including the historically black college Morgan State University (MSU) and the University of Southern California (USC). Their events are aimed at teaching Black Americans about blockchain, crypto, and other tech.

Bravado and other critics have derided Harris’ crypto statement as desperate and pandering, and he further expressed concern that singling out Black men puts an unnecessary burden on a group that already struggles with acquiring funding and financial opportunities.

“We don’t get enough support as it is, and now it feels like there’s even more pressure,” he said. “There are so many young people, women, and other minorities who are also trying to break through, but they aren’t being mentioned.”

Douglass, his NFTCLT co-founder, expressed concern that Harris’ language could deepen divides within the Black community, especially between men and women.

“It reinforces a gender divide that’s often used politically in America to weaken the strength of the Black community,” Douglass said. “I think this rhetoric only deepens the divide between Black men and women, which prevents us from coming together to mobilize in meaningful ways—which is what this space is for.”

Bravado and Douglass agreed that a clear and neutrally branded regulatory framework would be much more helpful and effective than singling out a specific group in a political agenda.

“I’m not sure that traditional lobbying is going to help in this case, because most of that is happening is from the big crypto companies,” Douglass said. “If smaller crypto people and business owners want to be successful in this space, I don’t think they’re going to find that support from the federal government.”

Since releasing the agenda, the Harris campaign has clarified that all of the programs and initiatives in the Agenda for Black Men—including fully forgivable loans for entrepreneurs, and nationally legalizing recreational marijuana—are meant to benefit all Americans, and won’t be limited by race.

“This specific focus acknowledges the unique challenges and opportunities Black men face in the digital economy, and builds on her broader commitment to economic equity, ensuring that no one is left behind​,” author and Professor at Penn State Dickinson Law, Tonya Evans, told Decrypt. “While the focus on Black men may seem targeted, it is part of a broader agenda that seeks to uplift all marginalized communities.”

Evans disagreed with the notion that the Harris Campaign is pandering to gain the support of Black male voters, but instead believes that it is based on genuine efforts to engage, listen, and respond to the needs of a diverse electorate.

“Her approach shows a dedication to earning the trust and support of every group by addressing their specific economic realities and opportunities in the Web3 economy,” she said. “Additionally, her broader policies support all Americans while ensuring that the most vulnerable and underrepresented communities benefit directly from her initiatives​.”

Since announcing his bid for reelection, Harris’ opponent, Trump, has made several overtures to the crypto faithful, including appearing at the 2024 Bitcoin Conference and launching multiple NFT drops. More recently, Trump launched a DeFi project called World Liberty Financial.

“Trump’s initiatives, such as World Liberty Financial, raise concerns about centralized control and favoritism, whereas Harris seeks to establish fair regulations that protect small investors and empower communities,​” Evans said.

Trump has repeatedly said that a loss in November would be bad for crypto and builders in the industry. Investors appear to agree, with the price of Bitcoin and other assets closely following his movements in the polls in what some analysts have called a “Trump trade.”

“If we don’t win the election, those people that were under investigation and that are free as a bird right now,” Trump said, “and people that weren’t being looked at in the crypto world, they will be living in hell—because it will start the day after the election if they win.”

While Trump has certainly been much more outspoken about his plans around crypto, Evans is steadfast that Harris’ approach is the right one overall for the future of the industry.

“Unlike Trump’s recent pivot to crypto, which some see as an attempt to court voters without addressing systemic issues, Harris has woven digital assets into her Opportunity Economy platform,” Evans said. “Her policies aim to create an inclusive environment where emerging technologies, like blockchain, benefit the broader public rather than the elite few.”

Edited by Andrew Hayward