- Coinbase’s advocacy group, Stand With Crypto, is launching its Political Action Committee (PAC) ahead of the 2024 U.S. Presidential elections, aiming to directly support congressional candidates who endorse crypto.
- The PAC has over 443,000 supporters since its inception in August 2023 and substantial financial backing, including contributions from corporate figures like Coinbase CEO Brian Armstrong.
Last year, crypto exchange Coinbase which started its own advocacy group – Stand With Crypto – is now opening its Political Action Committee (PAC) ahead of the U.S. Presidential elections later this year in 2024. This new PAC from Coinbase seeks to make direct donations to crypto-endorsing Congressional candidates, said Chief Strategist Nick Carr.
Stand With Crypto’s initial lineup of endorsements includes five contenders vying for open positions in the U.S. House of Representatives and Senate, although fundraising activities are currently on hold. Operating as an “associated PAC”, the initiative relies on contributions from its nonprofit members, with each limited to $5,000 donations.
Once financial support begins flowing into the PAC, the committee will commence direct contributions to candidates as they navigate the final stages of primaries and gear up for the pivotal November general election, as per the group’s announcement on Friday. Although Coinbase has launched its own PAC now, in the past, it had donated to several super PACs such as Fairshake, which support pro-crypto candidates.
Carr said that Stand With Crypto has seen solid growth in less than a year of its launch. After starting in August 2023, the organization already has more than 443,000 people signing on. Apart from the PAC, the group reports gathering over $86 million to fuel its advocacy initiatives, encompassing supporter gatherings, town halls, and even a forum for presidential candidates. Despite its portrayal as a grassroots entity, notable contributions have originated from corporate figures like Coinbase CEO Brian Armstrong.
The Importance of Having A PAC
What distinguishes the new PAC from other notable crypto campaign finance initiatives is that the latter has been largely funded by a small group of major digital asset companies, contributing $10 million or more to Fairshake and related PACs. These organizations direct unrestricted support to candidates independently of their campaigns.
In contrast, Stand With Crypto’s PAC, acting as the political arm of the 501(c)(4) social welfare organization, will directly donate to candidates who have shown a strong understanding and dedication to crypto and blockchain innovation in the United States. Contributions to the PAC will be subject to the limitations of direct donations, and unlike donations to the organization itself, donors will need to publicly disclose their identities.
Among the endorsed candidates is Democrat Eddy Morales, a city councilman from Oregon, who is entering a congressional primary and has emphasized the importance of emerging technologies like artificial intelligence and blockchain in fostering economic inclusion and wealth creation.
Similarly, the PAC has highlighted Troy Downing, a Montana Republican and the state’s securities regulator, who is vying for a House seat and advocating for a regulatory framework that provides clarity for emerging industries like blockchain.
As reported by Crypto News Flash, Coinbase has been fighting a legal battle with the US SEC over the violations of securities laws.
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