Coinbase and Crypto Heavyweights Raise $78 Million to Support Pro-Innovation Candidates
Coinbase, along with Kraken, Ripple, and Andreessen Horowitz, has raised and donated $78 million to support “pro-innovation” political candidates in 2024. The future of cryptocurrency in the U.S. depends on electing candidates and enacting policies that promote responsible and fair rules for crypto. These donations were made through a crypto-centric political action committee called Fairshake.
Fairshake is registered with the Federal Election Commission and supports candidates solely through independent activities. The super PAC has previously supported House Financial Services Committee Chair Patrick McHenry, R-N.C., as well as Rep. Ritchie Torres, D-N.Y., and Rep. Tom Emmer, R-Minn.
Crypto Lobbying on the Rise
Lobbying efforts from the crypto industry have increased significantly in recent years. In 2022, federal lobbying spending from the industry more than doubled compared to the previous year. Coinbase and Binance were among the top spenders, with Chair McHenry and Sen. Kirsten Gillibrand, D-N.Y., being the top beneficiaries.
These lobbying efforts have intensified following a challenging year for the industry that included high-profile trials and leadership changes at major crypto companies.
Challenges Ahead for Crypto Legislation in 2024
In 2024, crypto legislation will face significant obstacles as lawmakers seek to pass bills regulating stablecoins on a federal level and take a comprehensive approach to sector regulation. Although these bills passed out of the House Financial Services Committee in July, getting them approved by the Senate Banking Committee may prove challenging next year.
Coinbase’s Focus on Ohio
Aside from its political donations, Coinbase has also turned its attention to Ohio. The exchange has hosted events and launched ads in the state as part of its efforts to appeal to Ohio voters. This move is significant as Sen. Sherrod Brown, D-Ohio, who is up for reelection next year, has expressed concerns about crypto and called for a crackdown on alleged crypto-funded terrorism.
Hot Take: Crypto Industry Ramps Up Political Support for Pro-Innovation Agenda
Coinbase and other major players in the crypto industry are taking proactive steps to support political candidates who advocate for pro-innovation policies. By raising and donating $78 million through the Fairshake PAC, these companies aim to shape the future of cryptocurrency regulation in the U.S. This move comes amidst increased lobbying efforts from the industry, highlighting its commitment to influencing legislative decisions. However, crypto legislation still faces significant challenges in 2024 as lawmakers attempt to regulate stablecoins and adopt a comprehensive regulatory framework. Furthermore, Coinbase’s focus on Ohio demonstrates its strategic approach to engaging with key states and politicians who have influence over crypto-related policies.
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