Coinbase forms new PAC, vies for crypto-friendly regulation

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TL;DR Breakdown

  • Coinbase, one of the most well-funded companies in the crypto industry, has formed a political action committee (PAC).
  • The PAC aspires to endorse political leaders from all parties
  • Coinbase is targeting political leaders with cryptocurrency interest

In a move that could have widespread benefit for the crypto sector, leading cryptocurrency exchange Coinbase has filed with the Federal Election Commission to form a Political Action Committee (PAC). In a recent statement, Coinbase Vice President Dan Troop said that they believe in laying additional tools and services that make interacting with digital currency simple and secure. Moreover, he added that he believes the same approach to political engagement is necessary for the crypto industry.

Coinbase forms a PAC

Coinbase has long been committed to working with lawmakers and regulators on public policy that ensures innovation remains a key aspect of the crypto economy in diversity as well as simultaneously protecting consumers as Dan Troop said. Over the last few years, Coinbase’s efforts have included meetings with individual legislators, participation in industry events and conferences, submission of formal comments on proposed regulatory matters, and other outreach. Forming a PAC is the next logical step in their efforts to engage more directly with policymakers.

The formation of the PAC follows previous steps taken by Coinbase to build stronger ties with government officials. Last year, Coinbase hired former Marco Rubio aide and GOP operative Christine Harbin to lead government relations. The PAC’s creation comes at a time when Coinbase and many in the digital currency industry are pushing back against new state-specific rules for Bitcoin proposed by New York’s Department of Financial Services. A recent Gallup poll found that nearly 90% of Americans do not know what Bitcoin is.

Coinbase to endorse politicians with interests in crypto

The formation of Coinbase Innovation PAC can help shape regulation for the cryptocurrency market. As the United States gears towards its upcoming midterm elections, the PAC aims to endorse candidates from any party that have an interest in digital currencies, which could help influence crypto-friendly policies.

Coinbase has been on the frontline in forming pacts with government officials and government bodies who have an interest in cryptocurrencies. Many other crypto players are also pushing for friendly regulation for digital assets. According to a Politico press release, Sam Bankman-Fried, the head of FTX, has collaborated with regulation officials to ensure crypto regulation has been put in place. Sam Bankman alias Fried fully endorsed Joe Biden towards last year’s election with a sum of $5.2 million dollars through 2 super PACs.

The elected leaders will play a big role in the cryptocurrencies regulation in the US. The year 2022 has registered a number of announcements concerning regulations of cryptocurrencies that make an impact on the digital assets market.

US intensifies call for crypto regulation

The issue of crypto regulation and crackdown has been brewing in the US over the past year, as the government is yet to establish a clear policy to govern the industry. Early in January, Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC) said they are preparing to push more crypto exchanges into the regulatory space.

SEC wants to tighten the regulatory scrutiny on crypto exchanges in 2022, in order to bring them into investors’ protection remit. “If the trading platforms don’t come into the regulated space, it’d be another year of the public being vulnerable,” the SEC chairman said.

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