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14/08/24
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Harris Upholds Tough Stance on Cryptocurrency Regulation Amid Banking Struggles
Vice President Kamala Harris is set to uphold the Biden administration’s firm position on cryptocurrency regulation. She is collaborating with Brian Deese and Bharat Ramamurti, two former economic advisers known for their strong opposition to the recently proposed Clarity for Payment Stablecoins Act of 2023. This act was criticized for being overly lenient towards cryptocurrency issuers, suggesting that the Biden administration remains aligned against crypto facilitation.
The choice of Deese and Ramamurti as her key economic advisers may reflect Harris’s intent to sustain a critical regulatory stance on cryptocurrencies. As she prepares to outline her economic policy agenda in an upcoming speech, investors are keenly watching for insights into her strategy concerning cryptocurrency.
Recent events within the US banking sector have raised questions about potential coordinated actions against the crypto industry. In March 2023, the sudden collapses of Silicon Valley Bank, Silvergate Bank, and the forced closure of Signature Bank were interpreted by some as part of a broader initiative termed “Operation Chokepoint 2.0.” This phrase was coined by a crypto venture capitalist, who argued that these actions represented a collective effort to push the crypto sector out of traditional banking channels.
Deese and Ramamurti have been implicated in these developments, reinforcing concerns about the government’s relationship with digital assets. Ramamurti, recognized for his critical views on cryptocurrency during his tenure at the National Economic Council until October 2023, further solidifies the notion that Harris’s administration may not ease its regulatory grip on the crypto market.
This announcement comes shortly after Harris named Minnesota Governor Tim Walz as her running mate for the 2024 presidential election, setting the stage for a potentially significant economic policy direction focused on stringent crypto regulation.
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