Coinbase’s Political Move
In a surprising yet calculated step into the political arena, Coinbase has established a political action committee (PAC) dubbed the Coinbase Innovation PAC. This move, filed with the Federal Election Commission on February 7, signifies the crypto exchange’s desire to bolster lawmakers who advocate for the cryptocurrency space ahead of the fiercely contested 2022 midterm elections.
What is a PAC?
Political action committees are essentially fundraising entities geared towards supporting candidates who align with specific political interests. Coinbase, with its newly formed PAC, is aiming to influence the political landscape, particularly hoping to back candidates who echo its vision of enhancing economic freedom through cryptocurrency.
- Purpose: Support crypto-friendly lawmakers
- Goals: Advance regulatory clarity and economic freedom
A History of Engagement
It’s worth noting that Coinbase isn’t a novice in the political game. The exchange had previously registered a PAC in July 2018, only to close it shortly after, claiming a lack of funds and disbursements. Fast forward to 2021, and the looming potential threat of anti-crypto legislation has propelled the company to take a more proactive stance. Coinbase, alongside Square, formed the Crypto Council for Innovation to navigate these troubled waters and create productive conversations with regulators.
Financial Muscle?
In terms of lobbying strength, Coinbase has shown it means business. The exchange unveiled a whopping $1.5 million spent on lobbying efforts in 2021, reflecting its dedication to shaping the future of cryptocurrency policy. About half of this amount was disbursed in the fourth quarter alone, showcasing a robust push just as the midterms approach.
The Road to 2022 Elections
The timing of Coinbase’s PAC formation is particularly pivotal, as it comes just nine months before the American electorate heads to the polls on November 8. The battle for control of the House of Representatives and the Senate is heating up, with both chambers set to welcome new faces. Among those is Aarika Rhodes, a pro-crypto candidate looking to unseat Representative Brad Sherman, a known adversary of cryptocurrency.
However, it’s essential to note that while crypto is a significant issue, it doesn’t dominate the electorate’s consciousness. Candidates like Morgan Harper, competing for a Senate seat in Ohio, are navigating the murky waters of public opinion on crypto, promising to adopt a ‘learning mode’ approach to the emerging technology.
Looking Ahead
Despite the silence from Coinbase at the time of publication, their intentions appear clear: they are prepared to play the long game in politics. Their current actions indicate a solid commitment to promote a more favorable regulatory environment for cryptocurrencies, hoping that the tides of public opinion will shift toward acceptance and innovation.
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