Fairshake Raises $24.5M from Coinbase to Fuel Crypto, Blockchain Innovation in 2024 US Election
Fairshake received a donation of $24.5 million from Coinbase, which now brings total contributions for the committee to $85 million.
Federal political action committee Fairshake received a donation of $24.5 million from the cryptocurrency exchange Coinbase, bringing total contributions for the committee to $85 million. In addition to Coinbase’s corporate donation, CEO Brian Armstrong personally contributed $1 million to what he terms a “war chest,” designed to support politicians favorable to cryptocurrencies.
This donation aligns Coinbase with other notable contributors such as a16z and Ripple, who donated $20 million, Electric Capital with $500,000, and the organization’s spokesman, Josh Vlasto, with $100,000 that is a strategic response to the ongoing regulatory scrutiny over the cryptocurrency sector from the United States government.
“The crypto community is united to help elect leaders who support American innovation and job creation. It is long past time for Congress and the administration to pass strong and responsible regulation that supports innovation and growth, protects consumers, and roots out bad actors,” said Josh Vlasto, a spokesperson from Fairshake.
Fairshake supports candidates from the Democratic and Republican parties who favor cryptocurrencies. So far, the committee’s most significant spending has been allocated to support Representative Patrick McHenry, a Republican from North Carolina who has announced his decision not to seek re-election. Additionally, Fairshake has supported various other candidates, including Representative Dusty Johnson, a Republican from South Dakota; Josh Gottheimer, a Democrat from New Jersey; and Tom Emmer, a Republican from Minnesota.
“Supporting candidates from both parties who take a long-term view of technology is an important part of ensuring that clear rules of the road are developed for blockchain technology and digital assets. Crypto is at a tipping point in the US and without a clear regulatory framework for entrepreneurs, we risk sending innovation abroad while harming consumers by allowing bad actors to continue to slip through the cracks,” said Collin McCune, head of government affairs at Andreessen Horowitz, in a written statement.
In the fourth quarter of last year, Fairshake reported raising $78 million. The funds are earmarked to support candidates sympathetic to cryptocurrency and blockchain innovation during the upcoming 2024 election in the United States.
US Cryptocurrency Sector Faces Regulatory Strain
The cryptocurrency sector in the United States continues to face challenges amid an ongoing regulatory crackdown initiated by the United States government last year.
According to a litigation consulting firm Cornerstone Research report, the SEC filed the highest number of crypto-related enforcement cases in 2023 since 2013, indicating that digital assets have become a “top priority” for the commission. Despite approving spot Bitcoin ETFs last month, the SEC appears to be adopting a “regulation by enforcement” strategy in digital assets instead of providing a clear regulatory framework for companies to adhere to.
Recently, the Republican leadership within the House Financial Services Committee has called for reconsidering the rule proposed by the Consumer Financial Protection Bureau (CFPB), initially introduced in November, citing concerns about its unclear impact on digital assets.
The rule aims to grant the CFPB the authority to oversee “larger nonbank companies” providing services such as digital wallets and payment applications. It proposes that nonbank financial entities handling more than five million transactions annually adhere to the same regulations as large banks and credit unions.
If enacted, the rule could introduce additional regulatory uncertainty, potentially compromising the functionality of the digital asset industry, particularly concerning transactions involving digital assets.
In the changing landscape of the United States cryptocurrency sector, entities like Fairshake, by securing donations to protect the interests of the growing sector, highlight the industry’s endeavor to wield political influence amid ongoing regulatory challenges.
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