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Vice President Kamala Harris is steering the Democratic Party toward a more “pragmatic” approach to cryptocurrency, highlighting a potential shift in the party’s stance on digital assets.

What Happened: Her nuanced position marks a departure from the Biden administration's hardline regulatory approach, which has left the crypto industry on edge, according to a Politico report.

While Harris’s messaging signals a friendlier posture toward crypto, it's crafted to keep both skeptics and supporters within the party at bay.

Harris's balancing act comes amid ongoing disputes among key Democratic figures over the value of the crypto industry.

While some, including Senate Majority Leader Chuck Schumer (D-NY), view digital assets as a valuable innovation, others like Senator Elizabeth Warren (D-Mass.) and Rep. Brad Sherman (D-CA) remain cautious, focusing on the risks of financial crimes and consumer protection.

In navigating this political terrain, Harris has vowed to “encourage” the growth of digital assets while upholding safeguards for consumers and investors.

So far, Harris’s approach appears to resonate within the crypto sector.

"There's nothing controversial in there," said Rep. Sean Casten (D-Ill.), a notable crypto skeptic, in response to Harris's comments on the industry.

Her strategy involves broader economic policy themes while avoiding specific positions that could provoke backlash from either side of the crypto debate.

In an environment where the crypto industry wields considerable financial influence, Harris’s campaign is careful.

The industry, through a network of super PACs, has injected around $160 million into key races, which may impact control over Washington.

Harris has initiated discussions with crypto leaders and appointed former Treasury official Brian Nelson to spearhead her campaign’s crypto outreach.

However, this move has prompted advocates to reassess their perceptions of her as a potential ally.

For some Democrats, Harris's stance represents a welcome change.

"As soon as she became our nominee, we worked with her team to encourage a look at this issue as a way to differentiate her campaign from the current administration," said Rep. Wiley Nickel (D-NC), a leading pro-crypto Democrat.

He views Harris’s remarks as a potential “crypto reset.”

However, others remain skeptical, interpreting her current position as cautiously non-committal.

Why It Matters: In contrast to Biden's strict regulatory stance, Harris’s comments have drawn praise from some quarters of the crypto world.

Nonetheless, crypto supporters remain divided in their response. The industry advocacy group Stand With Crypto, created by digital asset exchange Coinbase COIN, initially rated Harris with a “B” but later changed her status to “N/A.”

This reversal underscores the difficulty in gauging her precise position.

Harris’s commitment to both encouraging digital assets and maintaining consumer protections has placed her in a complex position that is yet to provoke public discord within the party.

Meanwhile, some Democrats, like Rep. Ro Khanna (D-CA), see Harris's outreach as an “encouraging” sign.

By potentially embracing crypto, Harris may unlock financial support from Silicon Valley and the digital asset world.

A pro-Harris crypto group, Crypto4Harris, is already pitching an in-person fundraiser for crypto executives in light of her recent comments.

Should Harris embrace crypto-friendly policies, it could also serve to engage young male voters, as data indicates higher crypto ownership among this demographic.

However, this positioning risks a future clash with the left if Harris ascends to the presidency.

Despite this, others like Casten maintain that advocating for well-regulated industries is not inherently problematic.

What’s Next: For more in-depth discussions on the future of digital assets and cryptocurrency regulations, industry enthusiasts and policymakers will convene at Benzinga’s Future of Digital Assets event on Nov. 19, providing a timely platform to explore these evolving dynamics.

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