U.S. Crypto Businesses Back Crypto-Friendly Candidates
As the U.S. elections approach, crypto businesses are channeling funds into a political action committee (PAC) to support candidates who are friendly towards cryptocurrencies. Coinbase, Andreessen Horowitz (a16z), Electric Capital, and Ripple have collectively contributed tens of millions of dollars to the Fairshake PAC in an effort to influence U.S. policymakers and promote crypto-friendly policies.
Coinbase’s Contributions
Coinbase’s CEO, Brian Armstrong, personally donated $1 million to Fairshake, while the company itself injected an additional $24.5 million into the lobbying group. Together, Armstrong and Coinbase account for about one-third of the total $85 million raised by the PAC so far.
Ripple’s Support
Ripple, known for its token XRP, has committed $20 million to the Fairshake PAC.
“Supporting candidates, from both parties, who take a long-term view of technology is an important part of ensuring that clear rules of the road are developed for blockchain technology and digital assets.”
Collin McCune, head of government affairs at a16z
Venture Capital Firms’ Involvement
Venture capital firms have also contributed significant amounts to the PAC. a16z poured in $20 million, while Electric Capital donated $500,000.
The Need for Regulatory Clarity
The crypto market is actively seeking regulatory clarity and has been working towards shaping policies in its favor for several years. Despite efforts by U.S. lawmakers to create crypto legislation, specific laws tailored to the industry are still lacking.
Past Lobbying Efforts
In 2023, crypto firms increased their lobbying efforts, spending nearly $19 million in the first three quarters of the year, a 15.2% increase compared to the previous year. Coinbase led in lobbying expenditures, followed by Foris DAX, Blockchain Association, and Binance Holdings.
Hot Take: Crypto Businesses Seek Political Influence for Regulatory Clarity
Crypto businesses are funneling funds into a political action committee to support candidates who are friendly towards cryptocurrencies. The involvement of companies like Coinbase and Ripple, along with venture capital firms such as a16z and Electric Capital, highlights the industry’s desire for regulatory clarity and favorable policies. By contributing tens of millions of dollars to the Fairshake PAC, these businesses aim to influence U.S. policymakers and shape laws that accommodate blockchain technology and digital assets. With specific legislation tailored to the crypto industry still lacking, these efforts serve as a proactive step towards creating clear rules of the road.
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