The Next U.S. Vice President: Implications for the Crypto Market
Kamala Harris's team is diligently searching for the most qualified vice-presidential candidate, with an announcement expected by August 7. Industry lobbyists believe the choice of Harris’s running mate will significantly influence the administration's stance on cryptocurrency.
The shortlist of potential vice-presidential candidates includes three names. We have examined each candidate’s stance on the crypto industry.
Public records reveal that one of his largest electoral campaign sponsors in 2023 was Ripple Lab, which donated $1 million to Shapiro. A slightly larger amount of $1.1 million was contributed by Greylock, a Silicon Valley venture capital firm with a focus on FinTech and cryptocurrencies.
Moreover, in late March 2024, the environmental group Save Carbon County accused Shapiro of promoting the interests of the mining company Stronghold Digital Mining and its subsidiary, Panther Creek Electric Generating Facility. The core of the complaint is that Bitcoin miners were afforded tax incentives totaling $29 million, which, according to the claimants, should have instead benefited entrepreneurs establishing data centers in the state.
Governor Josh Shapiro’s administration has been involved in a quiet financial shift in Pennsylvania. Back in early 2019, the Pennsylvania Department of Banking and Securities (DoBS) issued official guidance on the Money Transmitter Act, clarifying that “virtual currency, including Bitcoin, is not considered ‘money.’” However, in April 2024, DoBS updated its guidance, now allowing cryptocurrencies to be recognized as “money.” This change reflects the increasing use of digital assets for transactions and signals Pennsylvania’s readiness to regulate them.
While some environmentalists and crypto skeptics might view these developments with concern, cryptocurrency enthusiasts are likely pleased, as the industry stands to gain if such a politician ascends to the role of America's vice president.
On one hand, Kelly has joined over 100 members of Congress in expressing concern about cryptocurrency being used to finance entities like Hamas and Palestinian Islamists, bypassing U.S. sanctions. Following a Hamas attack on Israel in October 2023, these lawmakers urged the Biden administration to provide information about how it plans to prevent crypto-financed terrorism.
On the other hand, Kelly was one of 12 Democratic senators who voted to overturn the SEC’s SAB 121 accounting recommendations, which complicate the storage of crypto assets for financial companies. Despite President Biden’s commitment to veto the repeal, Kelly and his colleagues chose to support the crypto industry’s position over the President’s stance.
His description of Donald Trump and Republicans as "weird" quickly gained traction among Democrats. Walz also believes that Republican leaders are pushing an agenda that lacks relevance. How this view translates to digital assets, which are now part of the party's electoral platform, is still unclear.
However, amidst his grounded concerns for things like school lunches and healthcare for his constituents, Walz signed a bill that will enable Minnesota to transition to 100% clean energy by 2040. Therefore, it's clear that Tim is not entirely removed from contemporary issues.
Thus, the front-runners in the vice-presidential race have yet to declare their clear support or opposition to cryptocurrencies (as has Kamala Harris herself). At first glance, the prospects for the cryptocurrency market under President Harris still seem unclear. However, remember that uncertainty always provides room for opportunity. Therefore, crypto lobbyists and the industry still have just under 100 days to convince Kamala and her partner to become greater Bitcoin enthusiasts than Donald Trump.
Josh Shapiro
Governor of Pennsylvania, Josh Shapiro Source: The Week
Governor Josh Shapiro of Pennsylvania is currently the frontrunner. He has never openly expressed affection for cryptocurrencies. Nonetheless, there are ample indirect indications to consider.
Public records reveal that one of his largest electoral campaign sponsors in 2023 was Ripple Lab, which donated $1 million to Shapiro. A slightly larger amount of $1.1 million was contributed by Greylock, a Silicon Valley venture capital firm with a focus on FinTech and cryptocurrencies.
Moreover, in late March 2024, the environmental group Save Carbon County accused Shapiro of promoting the interests of the mining company Stronghold Digital Mining and its subsidiary, Panther Creek Electric Generating Facility. The core of the complaint is that Bitcoin miners were afforded tax incentives totaling $29 million, which, according to the claimants, should have instead benefited entrepreneurs establishing data centers in the state.
Governor Josh Shapiro’s administration has been involved in a quiet financial shift in Pennsylvania. Back in early 2019, the Pennsylvania Department of Banking and Securities (DoBS) issued official guidance on the Money Transmitter Act, clarifying that “virtual currency, including Bitcoin, is not considered ‘money.’” However, in April 2024, DoBS updated its guidance, now allowing cryptocurrencies to be recognized as “money.” This change reflects the increasing use of digital assets for transactions and signals Pennsylvania’s readiness to regulate them.
While some environmentalists and crypto skeptics might view these developments with concern, cryptocurrency enthusiasts are likely pleased, as the industry stands to gain if such a politician ascends to the role of America's vice president.
Mark Kelly
Senator for Arizona Mark Kelly Source: The Wall Street Journal
Senator Mark Kelly has a nuanced view on cryptocurrency.
On one hand, Kelly has joined over 100 members of Congress in expressing concern about cryptocurrency being used to finance entities like Hamas and Palestinian Islamists, bypassing U.S. sanctions. Following a Hamas attack on Israel in October 2023, these lawmakers urged the Biden administration to provide information about how it plans to prevent crypto-financed terrorism.
On the other hand, Kelly was one of 12 Democratic senators who voted to overturn the SEC’s SAB 121 accounting recommendations, which complicate the storage of crypto assets for financial companies. Despite President Biden’s commitment to veto the repeal, Kelly and his colleagues chose to support the crypto industry’s position over the President’s stance.
Thus, Mark Kelly appears to be a man of integrity, guided by his own principles of fairness. The cryptocurrency industry would do well to endeavor to align this seasoned Navy veteran and former astronaut with their cause.
Tim Walz
Governor of Minnesota Tim Walz Source: Bloomberg
Minnesota Governor Tim Walz is the dark horse in our list of potential vice presidents, at least when it comes to cryptocurrency. Aged 60, Walz is thought to understand the needs of the ordinary person better than most. A former soldier, teacher, and football coach, he appears far removed from the cryptocurrency market.
His description of Donald Trump and Republicans as "weird" quickly gained traction among Democrats. Walz also believes that Republican leaders are pushing an agenda that lacks relevance. How this view translates to digital assets, which are now part of the party's electoral platform, is still unclear.
However, amidst his grounded concerns for things like school lunches and healthcare for his constituents, Walz signed a bill that will enable Minnesota to transition to 100% clean energy by 2040. Therefore, it's clear that Tim is not entirely removed from contemporary issues.
Thus, the front-runners in the vice-presidential race have yet to declare their clear support or opposition to cryptocurrencies (as has Kamala Harris herself). At first glance, the prospects for the cryptocurrency market under President Harris still seem unclear. However, remember that uncertainty always provides room for opportunity. Therefore, crypto lobbyists and the industry still have just under 100 days to convince Kamala and her partner to become greater Bitcoin enthusiasts than Donald Trump.
