Will Biden's replacement as Democratic candidate be pro-cryptocurrency?

There were hopes that California Governor Gavin Newsom was preparing to launch his own bid to be the Democratic nominee, but he has withdrawn.

Kamala Harris is working quickly to try to secure the Democratic presidential nomination, a day after Joe Biden dropped out of the race over concerns about his mental acuity.

And although he has obtained the backing of several big names in the party, not all of them have given him their support yet.

Former President Barack Obama caused a stir when he released a statement calling for an open contest to find Biden's successor in the 2024 race.

Some pundits, reading between the lines, are wondering whether this could mean his wife, Michelle, will announce her intention to run for office.

An Ipsos poll released earlier this month, as doubts about Biden were beginning to emerge, suggested she might be the only Democrat capable of beating Donald Trump at the polls.

But there is a more specific question to be asked here: Among Democrats, who would be most likely to adopt pro-cryptocurrency policies?

If it turns out to be Harris, both crypto investors and entrepreneurs could end up disappointed.

During her tenure as vice president, she has never publicly spoken about her views on digital assets, meaning we don't know her thoughts on topics like bitcoin and nfts.

We know she hasn't really voted on much cryptocurrency legislation during her time in Congress, and financial disclosures confirm she's not a HODLer.

We can deduce a couple of things from this.

First, it's highly unlikely that Harris would end up considering digital assets as a priority if she were to enter the Oval Office.

And if she were to make history by being elected, there is a considerable chance that her administration's stance toward cryptocurrencies will be a continuation of what we've had under Biden, with the Securities and Exchange Commission proving to be quite authoritarian in regulation.

There is a potentially silver lining to this: Harris has extremely close connections to tech giants in California.

During her successful bid for Senate, she received numerous donations from Silicon Valley entrepreneurs.

And as the importance of cryptocurrencies and blockchains continues to grow, these links could prove particularly advantageous.

Harris’ views on issues tangential to crypto are also worth looking at, with privacy being a core value that many investors hold dear.

We got a glimpse of his thinking on privacy when he reacted to a leaked Supreme Court opinion related to the overturning of Roe v. Wade in 2022.

“If the right to privacy is weakened, every person could face a future in which the government could potentially interfere with the personal decisions they make about their lives.”

Kamala Harris

There had been hopes that California Gov. Gavin Newsom might have been preparing to launch his own campaign to win the Democratic nomination, but he quickly nipped that speculation in the bud by endorsing Harris.

“With our democracy at stake and our future at stake, there is no one better to lead the case against Donald Trump’s dark vision and guide our country in a healthier direction.”

Gavin Newsom

Newsom's decision to sit out this race could be a disappointment to Democrats who believe in cryptocurrencies, especially since he has been quite supportive of digital assets and blockchain technology in general. He was previously quoted as saying:

“Blockchain in particular is something I see becoming more and more prevalent in our lives.”

Gavin Newsom

He also signed a cryptocurrency licensing bill that means California will now have to create a regulatory framework for cryptocurrencies that will go into effect on July 1, 2025. At the time, he stated:

“It is essential that we strike the right balance between protecting consumers from harm and fostering a responsible innovation environment, and I look forward to working with the author to achieve this.”

Gavin Newsom

Estimates from Security.org suggest that up to 40% of US adults now own at least one cryptocurrency (up to 93 million people).

But when it comes to the issues that concern Democrats and Republicans most, inflation, the economy and gun violence tend to top the list.

If elected, Harris will likely try to run a low-key campaign that doesn't create too much excitement and shows continuity with what Biden has already begun.