Bitrabo Editorial
Political engagement between the cryptocurrency sector and the upcoming 2024 US election is growing in significance, with prominent players like Coinbase making their presence felt. According to a recent report by Bloomberg, major industry figures, including Coinbase, have been noticeably absent from both Donald Trump’s and Vice President Kamala Harris’ list of campaign contributors.
The Shift in Coinbase’s Political Focus
Despite not contributing to either political candidate’s campaign, Brian Armstrong, the CEO of Coinbase Global, and the exchange itself have directed their donations towards congressional campaigns, believing it can have a more substantial impact. This strategic move is not only influencing races nationwide but also solidifying cryptocurrency’s position on the political agenda, as evidenced by recent bipartisan support for crypto-related legislation passed in the House.
Coinbase has emerged as a significant political donor within the digital asset industry, contributing a substantial $52 million to various political campaigns in 2024. This substantial increase in financial backing has positioned crypto companies as some of the primary corporate contributors in the current election cycle, based on research conducted by OpenSecrets and Public Citizen.
Despite concerns raised by critics over the large sums of money being infused into the political landscape by an industry with a contentious past, proponents argue that Coinbase and other firms are advocating for the interests of millions of Americans seeking continued access to digital assets. Their overarching objective is to establish a more transparent regulatory framework to validate the industry after facing what they perceive as regulatory challenges, particularly from the Securities and Exchange Commission (SEC).
Success of Crypto PACs in Primary Elections
Instead of endorsing individual candidates, companies like Coinbase are channeling their financial support towards pro-crypto political action committees (PACs), such as Fairshake. This strategic approach aims to back congressional candidates who align with the crypto industry’s interests, regardless of their political party affiliations.
Fairshake has celebrated its victories in 36 out of 42 primary races where it intervened, showcasing the efficacy of its targeted funding approach. Brian Armstrong emphasized in a recent interview that opposing cryptocurrencies has become increasingly risky for politicians, as it could result in what he describes as “political suicide,” underscoring the industry’s growing influence in reshaping the political landscape.
Bitrabo reported that Armstrong has actively engaged in bipartisan efforts by supporting both Republican and Democratic candidates throughout the years. Additionally, Coinbase has initiated StandWithCrypto, a movement boasting over 1.3 million advocates dedicated to rallying public support for legislation favorable to digital assets.
Image Source: DALL-E, Chart Source: TradingView.com