Inside the Democrats' Push For a ‘Crypto Reset’ with Rep. Wiley Nickel

Pro-crypto Democrats close to Vice President Kamala Harris’ campaign are clamoring to get her to ditch the anti-crypto wing of the party that has alienated millions of Americans.

One of those Democrats, Rep. Wiley Nickel (D-NC,) led the charge at the Bitcoin Conference in Nashville and even penned an open letter with a handful of colleagues to openly signal the policy shift underway. This week, Rep. Nickel joined Coinage to share an inside look on how those efforts are playing out as Vice President Harris prepares her stance behind closed doors.

"There's a fresh new perspective emerging in the Democratic party," Nickel told Coinage, noting that party leaders understand the mounting pressure to keep Web3 innovation in the United States. “The Biden administration didn't do meetings with leaders in the space. We asked for those meetings, they're already happening right now at the staff level.”

At the Bitcoin Conference in Nashville last weekend, Rep. Nickel’s reminder and warning to the crowd that former President Donald Trump once called bitcoin a “scam” was met with boos. He said it was an important point to make as he sees industry leaders line up behind the former President. 

“Donald Trump did nothing for four years as president, he doesn't understand the issues at all,” Rep. Nickel said, while also applauding Trump’s decision to say he would prevent the United States from selling any of the bitcoin it currently holds. “But you know, he's someone who's just trying to stay out of jail. I think he'll say anything and do anything and I don't think that commitment is especially real.”

To be fair, the Harris camp will equally have their work cut out for them to show the industry they are actively breaking from the anti-crypto policies established under the Biden administration. Despite the bipartisan effort to rebuke the SEC’s anti-crypto rule Staff Accounting Bulletin 121, President Biden later vetoed it. SEC Commissioner Hester Peirce later criticized both that decision and the way large banks were later able to secure workarounds to custody rules in private meetings.

"We're going to get that fixed in this Congress so that our best banks can take custody of digital assets," he said. Rep. Nickel also criticized Chair Gary Gensler's handling of the matter, arguing that the SEC overstepped its bounds. "He's way out of his lane. The SEC doesn't do banking," he remarked, emphasizing the need for a clear and supportive regulatory framework.

While some in the crypto industry are openly calling for Vice President Harris to push Chair Gensler out of leading the agency as a starting point, Rep. Nickel expressed his doubt at it actually happening. 

“I mean, I think that's unlikely,” he said, noting his term ends in 2026. “I don't want to speak for Vice President Harris here, but I can tell you that we asked for the next Chair of the SEC to be someone who embraces digital innovation.”

On the legislative front, Congressman Nickel outlined key priorities for the Democratic Party. "We need to get the stablecoin bill through Congress. We need to pass the Digital Assets Market Structure bill to protect consumers and keep those jobs here in the US," he stated. Nickel also highlighted the bipartisan support these initiatives have garnered, noting the involvement of prominent Democratic leaders like former Speaker Pelosi, Democratic Whip Katherine Clark, and House Democratic Caucus Chair Pete Aguilar.

In the coming weeks, Rep. Nickel said more progress within the Democratic party would be made to separate from its anti-crypto past.

“We're having that, you know, internal debate play out but the more and more that we educate people on these issues, the more folks we bring to our side,” he said. “Stay tuned.”

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