As it was revealed in a filing by the United States Federal Election Commission (FEC), one of the most popular cryptocurrency exchange platforms in the world Coinbase has formed a political action committee (PAC). It means that Coinbase has become the first crypto industry organisation in the USA to launch its own PAC. This move is the latest one in a series of steps made by cryptocurrency-related organizations to engage policymakers in the United States.
In the U.S., the goal of PACs is to raise funds for elections. According to the country’s federal law, for an organization to be classified as a PAC it is needed to collect donations worth more than $1,000 from its members and allocate this money for a campaign aimed at influencing an electoral process. PACs should pass through a registration process and be approved by the FEC in a full compliance with the provisions of the Federal Election Campaign Act 1974.
Political Action Committees are created with a view to provide support to election candidates whose ideas and policies are close to the viewpoints and objectives of PAC members. Such organizations also ensure a platform to lead a dialogue between participants of social, political or economic spheres and policymakers which helps to find points of understanding and cooperation.
The main goal why Coinbase has taken a decision to create its own PAC is to get closer to the politicians who may provide serious influence over financial regulatory policy. Traditionally, the national political and financial institutions in America have never been very positive about cryptocurrencies, nevertheless, now there will be a real opportunity to establish dialogue with politicians and change the general attitude to the industry.
Currently, there is still a rather high level of uncertainty in the crypto market caused by the regulatory issues. Nevertheless, a crypto industry PAC has good chances to make its contribution and to establish cooperation with the politicians that have real influence.
Forming a PAC is not the first step of Coinbase to realization of the strategy of political engagement and donations. Its co-founder Fred Ehrsam is known to have donated a total of $12,800 to Republican candidates, including multiple donations to former Republican presidential candidate Mitt Romney.
This year, Washington has paid a lot of attention to the local cryptocurrency industry. A number of hearings in both houses of Congress on matters related to the digital asset class has been held. That’s why local companies dealing with cryptocurrency has begun realizing the need for adequate representation in Washington if they want to be heard and to have an opportunity to expand their services.
As for Coinbase. now it is actively working on regulatory issues to add five new cryptocurrencies, including Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX), to its platform. Nevertheless, its latest trial to get an approval from the SEC on the acquisition of three companies was not a successful one.