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A virtual confab designed to repair relations between the crypto industry and the Democratic Party turned ugly Thursday morning, underscoring the uphill battle progressive crypto advocates are having trying to glean industry support for the presidential candidacy of Kamala Harris, Fox Business has learned.
The Zoom meeting was hosted by California Congressman Ro Khanna with the goal of mending fences during a contentious election year with a burgeoning industry that has been the target of a massive regulatory crackdown unleashed by the Biden Administration’s financial regulators. With Vice President Kamala Harris now at the top of the ticket, the party is looking to help Harris, its 2024 nominee, win back crypto votes from her GOP opponent Donald Trump, who has recently embraced the industry and vowed to make the U.S. the crypto capital of the world.
US Deputy Treasury Secretary Wally Adeyemo delivers a speech outlining the new action taken by the US Department of the Treasury’s Office of Foreign Assets Control imposing a second round of sanctions on key Hamas-linked officials and financial netwo (DANIEL LEAL/AFP via Getty Images / Getty Images)
Around twenty people were on the call, including top Biden administration officials such as Deputy Treasury Secretary Wally Adeyemo, Deputy Director of the National Economic Council Lael Brainard and Deputy White House Chief of Staff Bruce Reed. Kristine Lucius, a senior adviser to Harris, was also present.
Attendees from the crypto side included billionaire tech entrepreneur and crypto investor Mark Cuban, SkyBridge Capital founder Anthony Scaramucci, venture capitalist and Democratic donor Ron Conway, and a handful of executives from Ripple, Coinbase, Kraken, Uniswap and others.
Instead of finding common ground, industry executives lashed out at White House officials largely over the regulatory assault from agencies like the Securities and Exchange Commission and the Federal Reserve. People who attended told Fox Business the meeting seemed like a replay of the roundtable Khanna hosted in Washington D.C. last month when industry execs aired their grievances to a senior White House official about the unfair treatment they received under Biden.
WASHINGTON, DC – JANUARY 13: Lael Brainard, Federal Reserve governor and President Bidens nominee to be the new vice-chair of the Federal Reserve, is sworn in during her nomination hearing with the Senate Banking Committee on Capitol Hill January 13, ((Photo by Drew Angerer/Getty Images) / Getty Images)
“Executives didn’t hold back on telling the administration reps how much damage they’ve done to the crypto industry and to the Democrat Party with their actions against digital assets,” an attendee who wished to remain anonymous told FOX Business. “They basically just got yelled at.”
Conway, for instance, “aggressively” expressed frustration that the administration has provided nothing but empty promises to the industry. Conway, an early Coinbase investor, did not immediately respond to a request for comment.
Another tense moment occurred when Adeyemo told attendees that banks and regulators were not actively trying to cut the industry off from the broader financial system. In response, a crypto executive asked those on the call for a show of hands of whose firms have been denied banking services because of White House policies. According to two attendees, nearly all the industry representatives raised their hands.
Anthony Scaramucci, founder and managing partner of SkyBridge Capital II LLC, speaks during the Bloomberg New Economy Forum in Singapore, on Tuesday, Nov. 15, 2022. The New Economy Forum is being organized by Bloomberg Media Group, a division of Bloo (Bryan van der Beek/Bloomberg via Getty Images / Getty Images)
Despite the friction, Scaramucci tells Fox Business he’s optimistic that Harris will gain some support in crypto land.
“It’s encouraging that these high-level officials took the time to show up and listen to our industry,” Scaramucci said. “My colleagues in the crypto space understandably want action now, but that’s not how things work in Washington. I think we’re making steady progress.”
Paul Grewal, Coinbase’s Chief Legal Officer, also came away with a positive perspective.
“This was a Biden administration meeting, but the focus now has to be on the Harris campaign and what they’re willing to do,” he said. “She’s the perfect candidate to be a strong new face for crypto and make a break with the past.”
