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.
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 meeting Khanna hosted last month when industry execs aired their grievances to a senior White House official about the unfair treatment they have received for the past three years.
"Executives really didn't hold back on telling the administration reps just how much damage they have done to the industry and, by extension, to the Democrat party with their actions towards this technology," an attendee who wished to remain anonymous told FOX Business. "They basically just got yelled at."
Conway, for instance, expressed frustration that the administration has done nothing for the industry despite his efforts to bring attention to the crypto sector's plight for two years. Conway 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 polices. According to two attendees, nearly all of the industry representatives raised their hands.
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."
Coinbase's Chief Legal Officer Paul Grewal also came away with a positive perspective.
"This was very much 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."
