Democrats' New Platform Ignores Crypto

As the 2024 election approaches, the Democratic Party has released its latest policy platform, but it notably excludes any mention of Bitcoin or digital assets. This omission has disappointed many in the crypto industry who had hoped for a shift in the party's stance toward digital currencies. The absence of crypto-related topics from the platform, at a time when the industry's role in the presidential race is under intense scrutiny, has left many questioning the party's commitment to addressing the challenges and opportunities presented by digital assets.

There had been growing speculation that the Democratic Party might change its approach to cryptocurrency, particularly under the influence of Vice President Kamala Harris, who is a leading contender for the presidency. Many within the party, including some senators, were anticipating a "crypto reset" that could reshape regulations, especially after the strict measures taken during the Biden administration.

Under SEC Chairman Gary Gensler, the crypto industry has faced numerous regulatory challenges, including a series of lawsuits and restrictions. One of the most controversial efforts has been "Operation Choke Point 2.0," aimed at disconnecting the crypto industry from the U.S. banking system. Despite these challenges, there was hope that Harris might take a more supportive stance. However, the lack of any crypto-related policies in the Democratic platform suggests otherwise.

Further adding to the industry's concerns, reports indicate that Vice President Harris is consulting with advisors who are known for their anti-crypto views to shape her economic policies. Key figures like Brian Deese and Bharat Ramamurti, who were instrumental in creating the Biden administration’s tough crypto regulations, are reportedly playing a significant role in Harris's economic strategy. This reliance on anti-crypto advisors has deepened fears within the crypto community, which had been hoping for more balanced policies.

Democratic Representative Ro Khanna from California had been optimistic about the possibility of the party adopting a more crypto-friendly approach. In a recent podcast, Khanna outlined five key proposals he hoped would be included in the party's platform: keeping the U.S. as a leader in the crypto industry, ensuring fair banking practices for crypto firms, allowing banks to hold digital assets, clearly defining regulatory roles between the SEC and the CFTC, and considering Bitcoin as a reserve asset. Unfortunately, none of these ideas made it into the official platform.

The Democratic Party's reluctance to address these issues contrasts sharply with the Republican Party’s stance, which has openly supported Bitcoin and digital innovation. Led by former President Donald Trump, the Republican platform has strongly opposed the creation of a Central Bank Digital Currency (CBDC) and has positioned itself as a defender of crypto innovation. This stark difference between the two parties on digital currency issues has widened the divide.

In an effort to engage with the crypto community, the Democrats recently held a “Crypto4Harris” town hall, where they promoted what they called “sensible” crypto regulations. However, important issues like Operation Choke Point 2.0 and the right to self-custody of digital assets were not addressed, leaving many participants feeling disillusioned with the party’s true agenda. The lack of substantial discussion on these critical topics has led to skepticism about the party's commitment to supporting the crypto industry.

Despite the release of the Democratic platform and the ensuing reactions, the odds in the Polymarket prediction market regarding a potential Harris versus Trump election have remained mostly unchanged. Harris continues to have a slight edge with a 51% chance of winning, compared to Trump’s 47%. This suggests that while the crypto community is concerned about the Democratic Party’s stance, it has not yet significantly affected the broader election outlook.

In summary, the Democratic Party’s decision to omit Bitcoin and other digital assets from its latest policy agenda has raised concerns within the crypto industry. The reliance on anti-crypto advisors by Vice President Harris and the lack of clear support for the industry in the party’s platform suggest that those hoping for a more positive shift in crypto regulation may be left disappointed. As the election draws nearer, the crypto community will be closely watching to see if the party's position evolves or if the divide between the two major parties on this issue continues to grow.