Crypto Industry Ups the Ante in Washington
The crypto industry is making a significant push in Washington, D.C., with companies like Coinbase leading the charge. CEO Brian Armstrong has gone from avoiding the nation’s capital to making it a regular stop, recognizing the importance of currying favor with lawmakers.
A Growing Presence
Coinbase has become one of the top corporate donors this election cycle, contributing over $75 million to a group called Fairshake and its affiliate PACs. Armstrong personally contributed over $1.3 million to a mix of candidates. The company’s money is all over the nation’s capital, with a focus on supporting lawmakers who are friendly to the crypto industry.
A Matter of Survival
For Coinbase, the stakes are high. The company faces a lawsuit from SEC Chair Gary Gensler over claims that it sells unregistered securities. A judge has ruled that the case should be heard by a jury. Coinbase has fought back, saying it wants to work with regulators to create a proper set of laws governing the industry.
Competition Heats Up
Coinbase is also facing growing competition from rivals like Crypto.com. The company’s latest quarterly earnings report showed a miss on the top and bottom lines, leading to a 15% drop in shares. Data from CCData shows the exchange is losing spot market share to industry rivals.
A Favorable Legislative Environment
Washington can’t save Coinbase from the competition, but the company is betting that, with favorable lawmakers in place, it can thrive in a growing industry. Armstrong said his D.C. visits have increased significantly, with a focus on pushing for clear rules and legislation.
Building Relationships
Paul Grewal, Coinbase’s chief legal officer, has been building relationships with both Republican and Democratic candidates. He attended a fundraiser for former President Donald Trump and has had conversations with Democratic Vice President Kamala Harris’ campaign. Grewal said that both campaigns recognize the importance of supporting sensible rules for crypto.
The Stand With Crypto Alliance
Coinbase launched the Stand With Crypto Alliance last year, which has developed a grading system for House and Senate candidates. The organization is working to mobilize digital asset owners living in swing states, with a focus on getting them registered to vote. The alliance has enrolled 1.4 million advocates across the country.
A Determinative Issue
Faryar Shirzad, Coinbase’s chief policy officer, said that crypto has become a determinative issue in the presidential cycle. The company’s goal is to build a political operation that can neutralize the politicization of the crypto issue and talk about it on the merits.
Industry-Wide Effort
Coinbase is not alone in its efforts. Nearly half of all corporate money raised this election comes from crypto firms. Fairshake, one of the top spending PACs this cycle, has raised around $170 million and disbursed approximately $135 million. Ripple Labs is another major donor, having given around $50 million to Fairshake.
A Rallying Cry
The Stand with Crypto Alliance’s bus tour culminated in a rally at The Black Cat in Washington, D.C. The event featured music, drinks, and free merchandise, with Armstrong, Consensys CEO Joe Lubin, and Rep. Wiley Nickel (D-N.C.) speaking to the crowd. The rally was a show of force for the crypto industry, with a focus on mobilizing voters and pushing for favorable legislation.
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