The crypto industry, with a recent $25 million contribution from Coinbase Inc. has amassed one of the largest campaign war chests in U.S. politics. The industry has collected about $161 million so far, making it a powerful force in campaign finance for the upcoming elections. This influx of funds positions the crypto sector as a significant player, capable of influencing the legislative landscape to favor digital assets.
Building a Political Stronghold
Coinbase’s recent $25 million donation follows similar contributions from Ripple and Andreessen Horowitz [a16z], each adding the same amount. These funds bolster the Fairshake political action committee [PAC] and its affiliates, which focus on identifying and supporting congressional candidates with pro-crypto positions. These committees strategically target state primaries, providing substantial off-book support to lesser-known politicians who might advocate for crypto-friendly legislation.
Coinbase’s CEO Brian Armstrong said,
“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. Therefore, the simple conclusion is that we need to support pro-crypto candidates on both sides of the aisle, and unceremoniously vote anti-crypto candidates out of office.”
Also Read: Coinbase Says the SEC is Trying to Destroy Crypto in Latest Brief
A New Era of Political Influence
The significant contributions from the crypto industry place it on par with the massive war chests traditionally assembled by political parties. The scale of funding rivals sectors like healthcare and airlines, which have long been major players in political financing. House Majority Whip Tom Emmer defended these contributions. He went on to compare them to other industries’ efforts to influence the legislation. He said.
“This is no different than the healthcare industry; this is no different than the airline industry. This is all about: I want to get to know you. I’m going to invest in you, because I want to see you being the representative, because your views are in alignment with mine.”
Fairshake’s fundraising prowess could allow it to allocate over $300,000 to each contested House and Senate seat in the upcoming general election on Nov.5. This financial power, strategically directed, could significantly influence the composition of Congress and the future of crypto legislation in the United States.
Also Read: Federal Reserve Contradicts Coinbase Data on Cryptocurrency Usage in US