How Kamala Harris’ Nomination as Presidential Candidate Could Impact the Crypto Industry
Joe Biden dropping out could benefit crypto if the next Democratic candidate supports pro-crypto policies.
- According to their disclosures, Kamala Harris and her husband remain heavily invested in related sectors despite no direct investments in digital assets.
- The Kamala Harris memecoin surged 82.95%, while Biden’s Jeo Boden memecoin dropped over 60% after he endorsed Harris.
- Cedar Innovation Fund sees Biden’s resignation as a chance for the Democratic Party to embrace crypto and blockchain technologies.
US President Joe Biden withdrew from the presidential race, nominating Vice President Kamala Harris as the Democratic candidate. This is the first time a sitting US president has exited a re-election campaign.
White House aides learned of Biden’s withdrawal through his tweet on X, per Politico. Pulitzer Prize-winning journalist Paul Ingrassia argues that Kamala Harris may be ineligible for the presidency under the 12th Amendment, as her parents were not naturalized U.S. citizens when she was born.
“No person constitutionally ineligible to the office of President shall be eligible to that of Vice-President of the United States.”
Kamala Harris has not publicly addressed digital currencies, tokenization, blockchain, or NFTs. In contrast, President Biden has expressed clear views on crypto. Given his endorsement of Harris, some speculate she might adopt a similar anti-crypto stance.
Vice President Kamala Harris has publicly announced her plan to defeat Donald Trump and oppose Project 2025. This project includes provisions that could indirectly benefit crypto by creating a better regulatory landscape.
Kamala Harris’s Views on Project 2025 and AI
Project 2025, though not explicitly about crypto, aims to abolish the Federal Reserve and adopt a free banking system with the dollar backed by commodities like gold. Some enthusiasts suggest Bitcoin could also back the dollar, but Trump and his administration have not considered this.
Project 2025 advocates for clear crypto regulations, which could boost crypto adoption. Despite significant investments, per their disclosure, neither Kamala nor her husband holds digital assets directly or indirectly. Still, they hold millions in investments, with the largest being a $1-$5 million mortgage at Wells Fargo.
Vice President Kamala Harris has frequently addressed artificial intelligence (AI) during her tenure. While she acknowledges its potential benefits, she practices extreme caution. Her key points include:
- Recognizing the transformative potential of AI in fields like medicine and agriculture.
- Highlight significant risks, such as AI-enabled cyberattacks, deepfake misuse, and algorithmic biases.
- Emphasizing the need for robust regulation and global cooperation to ensure AI safety.
- Advocating for an AI Bill of Rights to protect privacy and prevent discrimination.
- Calling for legislative action to strengthen AI safety without stifling innovation.
Some view her stance on AI as anti-technology, but this interpretation remains unconfirmed as she has not yet publicly stated about cryptocurrency or other emerging technologies.
Market’s Reaction to VP Kamala Harris Being Endorsed by Joe Biden
The Kamala Harris memecoin, created three months ago on Solana, experienced a significant surge of 82.95%. Its value increased from around $0.11 to $0.31 during this spike, marking an 181.82% rise.
During the same period, Biden’s Jeo Boden (BODEN) meme coin dropped significantly by over 60%, falling from around $0.23 to just $0.009. According to CoinGecko data, nearly $10 million was wiped out of BODEN’s market cap, which previously stood at $16.2 million before the news.
A Polymarket bet titled “Lettuce or Biden — Who lasts longer?” concluded after Biden officially endorsed Kamala Harris and dropped out of the presidential race. With Biden’s exit, the Lettuce was declared the winner.
Bitcoin experienced significant price fluctuations, dropping from nearly $67,000 to just above $66,000 before surging to $68,000. eToro analyst Josh Gilbert believes Biden’s abandonment of the presidential race was a “win for crypto assets,” highlighting how as Trump’s odds increase, “the more crypto assets will price in his victory,” per Cointelegraph.
Despite concerns that Kamala Harris might continue Biden’s anti-crypto stance, the Cedar Innovation Fund sees Biden’s decision to step aside as an opportunity for the Democratic Party to embrace crypto and blockchain, according to Fox Business’ Eleanor Terrett.
