Coinbase Boosts Pro-Crypto Campaigns with $25 Million Donation to Fairshake
Coinbase, the leading cryptocurrency exchange in the United States, has announced a $25 million donation to the pro-crypto super PAC Fairshake. This donation, which matches recent contributions from Ripple and Andreessen Horowitz (a16z), brings Fairshake’s total funds to $160 million, making it one of the most formidable political action committees (PACs) in the 2024 election cycle. The influx of cash underscores the increasing political mobilization of the cryptocurrency industry as it seeks regulatory clarity and support from lawmakers.
Fairshake, launched to support pro-crypto candidates in federal elections, has quickly become a major player in U.S. politics. The PAC’s war chest has doubled in recent weeks, thanks to significant donations from Coinbase, Ripple, and a16z. According to data from OpenSecrets, Fairshake’s fundraising haul places it among the top five PACs this election cycle, rivaled only by major political organizations such as ActBlue and WinRed.
The funds are being strategically used to influence key congressional races by supporting candidates who favor crypto-friendly policies. Fairshake’s efforts have already led to substantial spending, with over $40 million directed towards ad campaigns for pro-crypto candidates in crucial House and Senate races. This targeted approach aims to shift the legislative landscape in favor of the cryptocurrency industry.
The donations come at a critical time for the crypto industry, which is navigating a complex regulatory environment. President Joe Biden’s recent veto of SAB 121, a bill that would have overturned the SEC’s restrictions on financial companies holding customers’ crypto assets, highlighted the ongoing tensions within the government regarding cryptocurrency regulation. Despite this setback, the industry has seen some positive legislative movements, such as the passing of the Financial Innovation and Technology (FIT) for the 21st Century Act (FIT21) by the House of Representatives. This bipartisan bill aims to establish a regulatory framework for digital assets, a crucial step towards providing clarity for the industry.
Coinbase CEO Brian Armstrong emphasized the importance of a bipartisan approach to achieving regulatory clarity. In a blog post, Armstrong stated, “The best way to get regulatory clarity in democratic countries is to elect pro-crypto candidates on both sides of the aisle, and to vote anti-crypto candidates out of office.” This sentiment reflects Coinbase’s broader strategy to ensure that crypto remains a bipartisan issue, appealing to both Democrats and Republicans.
Coinbase’s political efforts extend beyond financial contributions. The company has also launched StandWithCrypto.org, a grassroots organization aimed at mobilizing crypto advocates. The initiative has garnered nearly 1 million supporters, who have collectively sent over 200,000 emails and calls to members of Congress. This grassroots movement played a significant role in the recent legislative victories, such as the passage of FIT21.
StandWithCrypto.org provides a variety of resources for crypto supporters, including candidate scorecards, tools to contact representatives, and options to donate to pro-crypto candidates. The organization aims to make crypto voters a significant political force, capable of influencing election outcomes and driving legislative changes.
With the 2024 elections approaching, Fairshake’s substantial war chest positions it to significantly impact key races. The PAC has already spent millions on targeted campaigns, notably against Democratic candidates perceived as anti-crypto. For example, Fairshake spent over $10.7 million campaigning against Rep. Katie Porter, who lost her primary bid in California.
Despite these targeted efforts, Coinbase and Fairshake emphasize their bipartisan approach. Armstrong reiterated that support for pro-crypto candidates spans across party lines, reflecting the widespread ownership and interest in cryptocurrencies among Americans. According to Coinbase, around 20% of U.S. adults have owned crypto, with ownership rates evenly distributed among Democrats, Republicans, and Independents.
