Crypto Nonprofit To Support Industry-Friendly Candidates
The November US elections could become a major event for the crypto industry as the government’s crackdown on the sector has created an unclear and uncertain landscape for investors and businesses.
As such, voters and crucial figures are taking presidential and congressional candidates’ stances on the sector as a defining factor to consider. Recent reports revealed a nonprofit organization has launched a new Political Action Committee (PAC) to support industry-friendly politicians running for Congress.
Raising Funds For Pro-Crypto Candidates
On Friday, Reuters reported on Stand With Crypto’s newly launched project to raise money to endorse crypto-friendly politicians running for this November elections.
Stand With Crypto is an advocacy group started by Coinbase in 2023 and operates as a 501(c)(4) nonprofit, according to its website. The organization has nearly 450,000 members and “champions for clear, common-sense regulations for the crypto industry.”
Stand With Crypto’s PAC seeks to raise money for a bipartisan slate of candidates running in the House of Representatives and the Senate and put those who support cryptocurrencies and blockchain in office.
Nick Carr, the chief strategist of the nonprofit organization, told Reuters “The goal is to endorse candidates and support candidates that are protecting the rights of our advocates (…) throughout November.”
The PAC’s endorsements include Jim Banks, a Republican running for Senate in Indiana; Jim Justice, a Republican running for Senate in West Virginia; Troy Downing, a Republican running to represent Montana’s Second District; Shomari Figures, a Democrat running to represent Alabama’s Second District; and Eddy Morales, a Democrat running to represent Oregon’s Third District.
According to the news outlet, other crypto super PACs like Fairshake, Defend American Jobs and Protect Progress have raised more than $110 million during this election cycle. Supper PACs differentiate from Stand With Crypto’s PAC because they can receive unlimited-sized donations but can’t coordinate with campaigns directly.
A recent report by Public Citizen found that over half the money raised by most of these super PACs comes directly from corporate expenditures like Coinbase and Ripple Labs. The rest of the funds have been donations from billionaire executives and venture capitalists, including founders of VC firm Andreessen Horowitz, the Winklevoss twins, and Coinbase CEO Brian Armstrong.
Industry’s Role In Politics
Super PACs like Defend American Jobs claim that the industry already plays a role in this election cycle. The organization felt victorious after four endorsed candidates won the Indiana primaries on Tuesday, including Jim Banks, and Mark Messmer, a Republican running to represent the state’s Eighth District.
However, the industry’s involvement in this electoral campaign has faced some scrutiny by US regulators. During FTX founder Sam Bankman-Fried trial, prosecutors alleged that SBF had used his customers’ funds to donate over $100 million to US political campaigns, which raised concerns.
Despite this, crucial figures in the industry continue to advocate for a clearer and more friendly regulatory framework in the country. The US House of Representatives recently passed a bill to the Senate to nullify some policies by the Securities and Exchange Commission (SEC).
Ultimately, politicians have greatly criticized the SEC’s “overreaching” actions against the crypto industry. US Senator Cynthia Lummis and Chair of the Financial Services Committee Chairman Patrick McHenry have expressed their concerns about the regulator’s “unnecessary” crackdown on the sector on different occasions, calling for a better and less aggressive landscape in the US.
Total crypto market cap is at $2.27 trillion in the weekly chart. Source: TOTAL on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
