In a significant development for the cryptocurrency community, Vice President Kamala Harris has made her first public mention of the industry, expressing support for digital assets. This comes after Galaxy Digital CEO Mike Novogratz predicted back in August that Harris would eventually embrace the burgeoning digital asset space. While Harris’s remarks suggest a potential shift in her stance, she has refrained from outlining any concrete plans for regulatory changes or initiatives to promote the crypto sector.
During a New York fundraiser over the weekend, Harris referred to AI and digital assets as “innovative technologies.” This limited but significant statement marks a departure from her previous silence on the issue.
Back in August, Novogratz, known for his bullish outlook on cryptocurrency, predicted Harris’s potential pivot to crypto during an interview. He suggested that her political strategy might shift in light of Donald Trump’s growing popularity within the digital asset community.
Novogratz has consistently emphasized the importance of bipartisan support for cryptocurrency, arguing that it is crucial for the technology’s future growth. He expressed optimism that Harris would soon make her position clear, stating during a Galaxy earnings call: “I am fairly certain, and hopeful, that nominee Harris…is going to soon make comments that show that she’s from San Francisco — the land of innovation — and that she wants to be a pro-innovation, pro-crypto president.”
Historically, Republican politicians have been more vocal in their support for the cryptocurrency sector. However, there has been a significant increase in support among Democrats as well. Several Democratic lawmakers have joined Republicans in supporting measures to overturn the SEC’s Staff Accounting Bulletin 121 and the FIT21 Act.
Novogratz recognizes the importance of bipartisan support: “I am working really hard on the Democratic side now mostly because we don’t want to be a one-party industry; we’re a technology and a movement and it should be bipartisan.” He added, “If we get the Democrats to go where I think they’re going…now we’ve got both sides, and we can be less worried about Washington and more worried about prosecuting our business.”
Beyond the political landscape, Novogratz believes that the macroeconomic environment favors Bitcoin and cryptocurrencies in general. He points to the Federal Reserve’s recent decision to maintain interest rates, with a rate cut widely anticipated in September. “Lowering rates adds to the narrative of crypto,” Novogratz stated.
Despite the national debt surpassing $35 trillion, neither Harris nor Trump has extensively discussed addressing the national deficit by cutting spending. Novogratz believes this presents a significant opportunity for Bitcoin: “Until that paradigm shifts—and it’s hard to see it shifting—Bitcoin as a store of value and bitcoin as digital gold is going to have an amazing appeal to investors around the world.”
Novogratz predicted that if Trump’s pro-crypto stance gained traction, Harris would eventually have no choice but to embrace the sector to maintain political relevance.
As the debate over cryptocurrency regulation intensifies, these topics will be further explored at Benzinga’s Future of Digital Assets event on November 19. Key industry leaders and policymakers will gather to discuss the evolving role of digital assets in politics and finance.
