Coinbase Gives $25 Million to Massive Crypto Campaign War Chest

The cryptocurrency sector has reportedly stockpiled a massive amount of funds for this year’s election.

The latest cash injection comes from Coinbase, which has just given $25 million to crypto political action committee (PAC) Fairshake, Coindesk reported Monday (June 3).

“When it comes to our mission of increasing economic freedom by growing the adoption of cryptocurrencies, we are deeply engaged in policy efforts,” Coinbase said in a company statement. “The House and Senate help determine what crypto legislation gets passed, amongst other things, so growing the number of pro-crypto members is critical.”

This donation follows additional $25 million contributions last week by Ripple and Andreessen Horowitz, giving Fairshake and its associated PACs around $161 million to spend on the elections in the U.S.

The Coindesk report says U.S. regulations are still a huge obstacle for the crypto sector to win a broader worldwide acceptance, which could in turn lead to more mainstream investors and users embracing the technology.

Some lawmakers have begun warming to the digital assets, with the House of Representatives last month passing the Financial Innovation and Technology for the 21st Century (FIT21) Act, which establishes a federal regulatory framework for the sector.

“The bill, which was first voted to the House floor in 2023, passed the House by a vote of 279 to 136, with 208 Republicans and 71 Democrats voting to approve it,” PYMNTS wrote recently. “Its bipartisan passage shows how far the embattled crypto sector has come, from a regulatory perspective, in America.”

That doesn’t mean the government is on board with cryptocurrency. The Securities and Exchange Commission (SEC) issued a statement ahead of the FIT21 vote saying the bill would undermine its work.

And last week, President Joe Biden vetoed a measure that would have placed curbs on the SEC’s oversight of the sector.

All the same, FIT 21 passed, “providing a glimmer of hope to an industry that has long bemoaned the lack of regulatory clarity around its operations in the U.S,” PYMNTS wrote.

“Next up, the crypto industry will need to prove its usability and utility across payments and commerce as it seeks continued inroads into the traditional financial landscape and greater mainstream acceptance.”