In recent years, the industry has faced several high-profile lawsuits from the US Securities and Exchange Commission (SEC), prompting key players to seek the support of lobby groups like Fairshake.
With the 2024 US elections looming, major players in the crypto industry are doubling down on their support for pro-crypto candidates in a bid to influence regulatory policies in the booming industry. Coinbase, the United States’ largest cryptocurrency exchange, has joined the ranks of major crypto firms in supporting crypto-friendly candidates ahead of the 2024 US elections. On Monday, the Coinbase exchange announced a hefty $25 million donation to the pro-crypto super PAC Fairshake, adding to recent contributions from Ripple and tech-focused venture capital firm Andreessen Horowitz (a16z).
Boosting Fairshake’s Influence
The latest donation from Coinbase brings Fairshake’s total funding to $160 million, making it one of the top five largest super PACs for this election cycle. Super PACs like Fairshake allow companies to spend huge sums of money on elections, heavily influencing political races. These PACs work separately from the candidates’ campaigns but can run ads for or against them.
Fairshake has already allocated over $40 million to back pro-crypto candidates running for key House and Senate seats, aiming to influence regulatory policies in favor of the crypto industry. In recent years, the industry has faced several high-profile lawsuits from the US Securities and Exchange Commission (SEC), prompting key players to seek the support of lobby groups like Fairshake.
Despite the growing pressure, SEC chair Gary Gensler remains cautious about embracing the crypto industry’s demands. While acknowledging the need for clear guidelines, Gensler has expressed concerns about potential risks and challenges posed by the rapidly evolving digital asset landscape.
The Need for Bipartisan Support
Coinbase CEO Brian Armstrong has emphasized the importance of electing pro-crypto candidates from both political parties to ensure regulatory clarity and foster the growth of the digital asset industry. Armstrong noted that the best way to achieve this clarity in democratic countries is by voting out anti-crypto candidates and supporting those who align with the crypto community’s values.
He stressed that crypto is a bipartisan issue, affecting Democrats, Republicans, and Independents alike, and urged the community to send a strong message in the upcoming elections by electing candidates who support the industry.
So far, Republicans have been more vocal about crypto, with leaders like House Financial Services Chair Patrick McHenry pushing for new laws. However, recent votes have garnered support from both sides. For example, a vote in the Senate overturned a SEC bulletin, with 60 senators in favor and 38 against.
While some criticize pro-crypto donations for potentially influencing political decisions in favor of special interests, crypto supporters argue that it’s similar to other industries funding candidates aligned with their goals.
As Fairshake continues to rally support, the impact of its financial backing on the elections and successive regulatory policies remains to be seen.
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