Coinbase, the increasingly popular crypto exchange led by Brad Armstrong and Fred Ehrsam has recently formed its own Political Action Committee (PAC), becoming the first crypto industry organization in the United States of America to do so. This was revealed on Friday, July 20, in a filing made public by the United States Federal Election Commission (FEC).
The recent development is only the latest in the line of audacious and visionary decisions made by the crypto exchange provider to secure its relevance, authenticity and of course power in its long-term future.
Political Action Committees are formed in the U.S. primarily, ‘to raise funds on behalf of candidates running for public office, usually representing specific business or ideological interests, according to the Center for Responsive Politics, a financial transparency group which tracks money in politics.’
Needless to say, the time cannot be right than now! It is a sign Coinbase is leaning and commendably pushing for more sway and say in Washington DC as the crypto exchange industry looks to have more users.
The disclosure published by the U.S. Federal Election Commission revealed that the exchange formed the “Coinbase, Inc. Political Action Committee” in June 2018, though it was yet to raise or donate any money as at the 30th of June. From the report, however, it is clear the Coinbase PAC is not currently attached to any political candidate as of this moment.
While this may be the first PAC formed by a crypto organization, Coinbase itself is not new to the particular concept of nurturing and executing a pro-business agenda; as the exchange itself has already donated more than $81,000 for political causes.
Coinbase reportedly donated $78,000 to Brian Forde, a Congressional candidate and former Office of Science and Technology Policy advisor to President Barack Obama. The other $3,000 were spent on BIT PAC and promptly donated to Republicans Justin Amash and Josh Mandel.
Where Do We See Coinbase Going?
Well, what’s in it for Coinbase? Where do we see the exchange going from here? It is quite apparent Coinbase has a lot on their agenda and is working to evolve rapidly following the brief period of its creation, it is no coincidence they keep pushing up the peak of the news.
In May, Coinbase announced it would subsequently revamp its trading technology and create a new suite of services to further attract more institutional investors, including hedge funds and high-frequency trading firms. Interestingly, the company just recently signed up a $20 billion hedge fund for its institutional brokerage service, which surely counts as a significant win.