Kamala Harris could mean an end to Democrats’ hard line on crypto—but it’s too soon to say for sure

In President Biden, the crypto world is facing a staunch critic whose administration has long blocked legislation to support the industry and focused almost entirely on enforcement. Now, after a historic weekend in which Biden withdrew his reelection bid, the crypto industry must now evaluate Vice President Kamala Harris, who is almost certain to represent the Democrats on the 2024 ticket. Will crypto face the same thing under a Harris presidency, or will it take a softer stance?

Harris hails from the nation’s tech capital, California. While she was the state’s attorney general and was hounded on social media platforms for sexual harassment, she developed close relationships with executives like Meta’s Sheryl Sandberg, which gave her a reputation as a pro-business politician. Many in the crypto world hope she can bring that same outlook to her campaign and potentially the White House.

“Given the increasing bipartisanship we’ve seen in Congress, I expect Harris’ presidency to continue on that path,” Adam Minehardt, head of global government relations at the Stellar Development Foundation and former chief of staff to Nydia Velázquez (DN.Y.), told Fortune in a text message.

Sea change

The Biden administration may not have started out with an anti-crypto bias, but the collapse of FTX and the fallout from Sam Bankman-Fried’s political donations have triggered a chain reaction of hostility. A series of congressional hearings in late 2022 and early 2023 highlighted the risks blockchain platforms pose to consumers, and government agencies headed by Biden appointees like Securities and Exchange Commission Chairman Gary Gensler have filed lawsuits against some of the industry’s biggest players.

Despite the chilly atmosphere, centrist Democrats and Republicans have advanced several major bills through the House Financial Services Committee, including a bill to sweep market structure regulation and overturn a controversial SEC bulletin that has widespread bipartisan support. Meanwhile, former President Trump has embraced the blockchain sector, including a planned appearance at a Bitcoin conference this weekend. Vice presidential candidate Sen. J.D. Vance (R-Ohio) has also established himself as a crypto advocate and personally owns Bitcoin.

Harris may have been a pro-tech politician who became a California senator and then vice president, but she hasn’t taken a public stance on blockchain regulation. A crypto lobbyist who spoke to Fortune on the condition of anonymity to speak candidly about the evolving political dynamics described the situation as “up in the air.” All eyes will be on Harris’ vice presidential pick and what advisers she’ll surround herself with, they said.

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When Biden became president, many of his economic advisers came from the progressive camp and had worked particularly with cryptocurrency critic Sen. Elizabeth Warren (D-Mass.). Harris doesn’t have the same connections. A cryptocurrency policy adviser and former Biden administration official, who spoke to Fortune on the condition of anonymity, said Harris has largely been shut out of economic policy. “She doesn’t have the same rapport that Biden and Warren have, or even the same closeness to Warren’s team,” they said. Still, Warren endorsed Harris shortly after Biden withdrew his nomination on Sunday.

If Harris is elected, the question will be whether she will seek to appoint a new SEC chair when Gensler’s term ends in 2026, but she could push for a clean slate. The crypto lobbyist said it would be “safer” for the Biden administration to keep its infrastructure in place.

While Harris has yet to secure the Democratic nomination, the Chamber of Digital Commerce, a blockchain trade group, took the opportunity to publish a letter urging her to support crypto legislation. “We believe this technology is neutral and the Democratic Party should support these innovations as well,” they wrote.

This story was first published on Fortune.com