Coinbase, a popular cryptocurrency exchange, has announced a significant donation of $25 million to the crypto-focused super political action committee (PAC) called Fairshake. This move is part of Coinbase’s efforts to increase its lobbying activities in preparation for the upcoming November elections in the United States.
According to a blog post by Coinbase CEO Brian Armstrong on June 3, this donation brings the total amount raised by Fairshake and its affiliates to $160 million for this election cycle. Ripple and venture firm Andreessen Horowitz also made similar donations last week.
Armstrong emphasized the importance of sending a clear message to political candidates that being against cryptocurrency is not a wise political move. He stated that it is crucial to support candidates who are pro-crypto from both sides of the political spectrum and remove those who are against it from office.
Coinbase is determined to support the crypto industry and has stated that it is open to engaging with critics but will no longer provide financial support to them. Instead, the company will focus on campaigning against candidates who hold anti-crypto views.
Fairshake, with its $160 million funding, is now one of the most financially well-equipped super PACs in the country, according to analysis by OpenSecrets. Although it is not allowed to directly donate funds to political candidates, it can spend an unlimited amount of money to support them in other ways.
OpenSecrets data reveals that Fairshake has dedicated $10 million of its funds to lobbying against Democrats, which accounts for a quarter of the $40 million it has spent for this election cycle. In the past, Fairshake has even funded attack ads against California Representative Katie Porter, who lost in a primary race for the Senate in March.
Coinbase’s donation to Fairshake comes just before the November 5 U.S. elections, where the presidency, all 435 House seats, and 34 out of 100 Senate seats are up for grabs. Currently, the Republicans have a majority in the House, while the Democrats control the Senate. However, a report by Public Citizen in May highlighted the crypto sector’s significant influence in key races and its potential to sway control of Congress towards one party or the other.
Despite facing multiple recent felony convictions, Republican presidential candidate Donald Trump remains the favorite in the upcoming elections. According to polls conducted by FiveThirtyEight on June 3, Trump is currently leading incumbent Joe Biden by 1 percentage point.
In the midst of all this, the cryptocurrency industry has caused a sudden divide among Democrats leading up to the election, as highlighted in a recent magazine article.