Coinbase Makes Another $25 Million Donation to Super PAC Fairshake
Coinbase announced it donated another $25 million to crypto PAC Fairshake, aiming to elect pro-crypto candidates and shape legislative outcomes ahead of the U.S. elections.
In a move to solidify its influence in U.S. politics, crypto exchange Coinbase has donated $25 million to the Super Political Action Committee (PAC) Fairshake. This latest contribution increases the total funds raised by Fairshake and its affiliates to $160 million for this election cycle, highlighting the growing power of the crypto sector.
Coinbase CEO Brian Armstrong emphasized the necessity of this funding in a June 3 blog post, stating that “crypto voters won’t be taken seriously until we send a clear message to political candidates that it is bad politics to be anti-crypto.” Armstrong outlined that supporting pro-crypto candidates across the political spectrum and voting out anti-crypto candidates is essential for the industry’s future.
Fairshake, now one of the most well-funded PACs in the U.S., uses its resources to support candidates indirectly through various expenditures. For instance, OpenSecrets data reveals that Fairshake’s most significant expenditure this cycle has been $10 million on lobbying against Democratic candidates, a notable portion of the $40 million spent in total.
Earlier this year, Fairshake financed attack ads against California Representative Katie Porter, who subsequently lost a primary race for the Senate. This illustrates the PAC’s strategic efforts to influence key races and support candidates aligned with the crypto agenda.
The upcoming November 5 U.S. elections, with the presidency, all 435 House seats, and 34 out of 100 Senate seats in contention, are critical. The current political landscape, characterized by a Republican-majority House and a Democrat-controlled Senate, could experience significant shifts influenced by the crypto industry’s lobbying efforts.
Coinbase’s contribution follows similar donations from Ripple and venture firm Andreessen Horowitz, among other prominent supporters like Gemini’s Winklevoss twins, Jump Crypto, and Union Square Ventures. According to Public Citizen, digital asset-affiliated super PACs, including Fairshake, have raised the third-highest amount of funds ahead of the 2024 elections.
Beyond Fairshake, Coinbase has also launched its nonprofit initiative, Stand With Crypto, last August to promote pro-crypto legislation. This nonprofit has grown rapidly, now boasting over 900,000 advocates nationwide, nearly doubling its membership since May.
The Biden administration’s stringent stance on crypto regulation underscores the urgency of these political efforts. Recently, President Biden vetoed H.J. Res. 109, a bill aimed at overturning the SEC’s Staff Accounting Bulletin No. 121 (SAB 121), which requires financial institutions to list customers’ digital assets on their balance sheets. Critics argue that this requirement imposes significant operational and financial burdens on firms handling cryptocurrencies and exposes customers’ assets to potential risks in bankruptcy situations.
As the November elections near, the crypto industry’s strategic financial and political investments are set to play a pivotal role in shaping the future regulatory landscape for digital assets in the U.S.
