Crypto is an 'important lever,' says former Harris and Obama advisor David Plouffe

Crypto is an “important lever” in the political landscape, said David Plouffe, a former advisor to Vice President Kamala Harris and President Barack Obama.

Speaking Thursday at Coinbase’s State of Crypto Summit in New York, Plouffe acknowledged that many view the Biden administration as unfriendly toward the crypto industry.

Earlier that day, Coinbase announced that Plouffe had joined its Global Advisory Council. Other members include former Independent Sen. Kyrsten Sinema, former Defense Secretary Mark Esper, Republican strategist Chris LaCivita, and former Republican Sen. Patrick Toomey.

Plouffe spoke about the growing role of crypto in election strategy.

"If you're a politician running for office, the ability to talk to folks who may be crypto enthusiasts who aren't sure whether that they're going to participate, maybe they haven't participated before," he said. "Crypto may be the entrance, but then you can talk about your economic plans beyond that whether they be education, healthcare, pick the issue."

The crypto industry played a notable role in the 2024 elections. During the Biden administration, agencies such as the Securities and Exchange Commission took a cautious, and at times confrontational, approach to digital assets. While campaigning, Vice President Harris said that her administration would encourage innovation in areas such as AI and cryptocurrency, while also protecting consumers and investors. Meanwhile, former President Donald Trump embraced crypto, vowing to end what he called an “unlawful, un-American crackdown” on the industry.

Stand With Crypto, an organization supported by Coinbase, spent millions during the 2024 election cycle and maintains a scorecard tracking lawmakers’ positions on crypto.

Trump has drawn criticism from some Democrats for his crypto ties, including his involvement with World Liberty Financial, which launched its own stablecoin, and his decision to support a Trump-branded memecoin and host a dinner for top holders.

Plouffe said Trump's crypto dinner involved some conflict, during the panel sitting alongside LaCivita, a co-manager of the Trump presidential campaign. 

"There's no doubt there is some conflict, Chris with all due respect, like the dinner that was held," Plouffe said. "I think there's understandable reaction to that. That can complicate things." 

LaCivita spoke about Trump's reaction to crypto and said the "newness of it" was exciting.

"Anytime you're given an opportunity to embrace something that's as new as that, it's an exciting time, and of course, you have to do your due diligence, of which we all did," LaCivita said. "For the president to embrace it as fully as he did, I know it surprised a lot of people."