The attitude of the Democratic Party's vice presidential candidate towards the crypto space is relatively conservative, which may pose potential policy risks

Source: CoinWorld

Author: Web3 Scent Observation

Following Republican candidate Trump's selection of Vance as his running mate, U.S. Vice President Harris announced on August 6 local time that Minnesota Governor Tim Walz would be her running mate, making him the Democratic vice presidential candidate. The two will then face off against Trump and Vance in the race for the 2024 U.S. presidential election.

For crypto investors around the world, beyond PolitiFi and the meme coins touted by the party leaders, the successful candidate's attitude towards Web3 and crypto assets is also a major focus of this election. Notably, Walz himself has enacted legislation to strengthen cryptocurrency regulation during his tenure as governor of Minnesota.

In contrast, Walz's opponent, Republican candidate James David Vance, has shown a noticeably more positive attitude towards crypto assets. Trump himself recently stated at the Bitcoin 2024 conference that if elected, he would designate Bitcoin as a national reserve asset.

Who is Walz? Why has he become a potential candidate for U.S. vice president? If Harris is elected, will her policies pose significant risks to the global crypto community?

1. In contrast to Republican opponent Vance, does Walz's rural background enhance political correctness?

A look at Walz's background and resume reveals that his rural identity may be particularly valued by the Democratic Party.

At 60 years old, Walz was born in rural Nebraska and moved to Mankato, Minnesota during his youth, where he taught social sciences in high school and also served as the school's football coach, leading the team to a state championship. He retired from the National Guard in 2005 and began his first campaign for public office.

In 2006, Walz defeated Republican Gil Gutknecht and successfully became a congressman, accumulating extensive connections and experience during his 12 years in the House, serving on the Agriculture Committee, the Military Committee, and the Veterans Affairs Committee. In November 2018, Walz defeated Republican candidate Jeff Johnson to become the governor of Minnesota.

Born in a rural area and serving on the Agriculture Committee after entering politics, along with his military service, this series of experiences mirrors those of Republican Vance. It is evident that this is a key factor in Walz's selection as Harris's running mate, as rural areas and their corresponding Rust Belt are Trump's base. Vance, who comes from a rural background and authored "Hillbilly Elegy," further strengthens Trump's influence over his base. Within the Democratic Party, Harris lacks a foundation among rural voters and those in remote areas, which Walz can help to address.

2. Walz as a vice presidential candidate may convey special signals

It is well known that in U.S. presidential elections, the choice of a running mate is crucial. Once a candidate wins, their running mate will naturally assume the position of Vice President. Additionally, the Vice President plays an important role in administrative affairs and has a significant influence on the formulation and execution of presidential policies. Therefore, Walz's attitude towards crypto assets could have a considerable impact on the industry.

Walz positions himself as a pragmatist, seeking to balance strong union relationships, job creation, and innovation. However, as a representative force within the Democratic camp, Walz has shown a clear preference for the clean energy industry, which may lead to a relatively conservative stance on high-energy consumption industries like POW mining. During his tenure as governor of Minnesota, he implemented one of the most progressive energy policies in the nation, signing a bill last year that requires the state to transition to 100% clean energy by 2040.

According to Cointelegraph, Walz advocates for strict regulation of cryptocurrencies, believing that the U.S. government should impose stricter regulations on the use of cryptocurrencies and does not support proposals to classify crypto assets as a legal form of payment. Of course, Walz's attitude towards crypto is not entirely negative; he does not believe that the use of cryptocurrencies for cross-border payments should be completely banned. From Walz's few direct statements regarding the crypto world, his overall stance appears more negative compared to Vance and Trump, but still leaves some room for maneuver. How much room there is remains to be seen over time.

Of course, Harris's position on crypto is the real key. Publicly available information shows that Harris has not clearly expressed her stance on crypto assets, and she has not personally engaged in crypto investments. Compared to the Biden administration's high-intensity regulatory policies on crypto, Harris's position appears somewhat ambiguous.

It is worth noting that among Harris's supporters are several prominent figures in the crypto space, such as well-known Web3 investor Mark Cuban, Ron Conway, managing partner and founder of SV Angel (investors in Coinbase and OpenSea), and Ryan Morrison, partner at Founders Circle Capital (investors in Robinhood and FalconX). Additionally, U.S. media reports indicate that Harris's team secretly met with representatives from leading domestic Web3 companies, including Coinbase, Circle, and Ripple Labs, at the end of last month.

3. A pro-Crypto, relaxed regulatory stance will become the main theme; election results cannot shake this trend

Crypto is unstoppable, and this is beyond doubt, especially in the U.S. Therefore, regardless of who is elected, the U.S. attitude towards the crypto space may further loosen, as the penetration of crypto among grassroots voters and large capital players in the U.S. is increasing, gradually becoming an indispensable part of the financial system. Previous data from Coinbase indicated that there are at least 52 million cryptocurrency owners in the U.S., accounting for over 15% of the total population. Of course, this number continues to grow. As Trump stated at a campaign rally, the U.S. must seize the dominance of Web3 and Crypto, ensuring that this field does not fall into the hands of others.

Moreover, the election results cannot affect the optimism of market participants regarding future market trends.

Arthur Hayes, co-founder of BitMEX, recently stated in an interview that regardless of who wins the 2024 election, it is not important for the crypto industry. The new government will continue to "print money," albeit in different ways, but the cryptocurrency market will ultimately benefit.