Coinbase and CEO Gear Up ‘War Chest’ to Support Pro-Crypto Politicians

Coinbase Global Inc. chief executive officer’s resurging affluence is buoying his rising influence as Armstrong put some of his fortune to work to help fund what he calls a “war chest” to support crypto-friendly politicians as the industry remains pressured by a US government crackdown that began last year.

A $1 million donation to Fairshake demonstrates Armstrong’s financial commitment. The political action committee supports candidates sympathetic to the cryptocurrency cause. According to FEC filings, Coinbase has also put up $24.5 million toward the PAC of the $85 million raised under Armstrong’s leadership.

Armstrong and his company account for about one-third of the $85 million the group has raised. Coinbase describes the PAC’s goal as big spending that amplifies “crypto’s superpower of grassroots support” and reminds observers that even with the comeuppance of mega-donor Sam Bankman-Fried, the industry hasn’t lost its influencing power in politics.

Armstrong had plenty more to spend if he chose. Last year’s massive rebound in company stock lifted his fortune to an estimated $5.8 billion, a jump of about 300% from the beginning of 2023, according to the Bloomberg Billionaires Index. He cashed in $78 million worth of shares in the company last year, according to data compiled by InsiderInsights.com.

The Securities and Exchange Commission (SEC) threatened to sue Coinbase last year over allegations that it ran an unregistered exchange, broker-dealer, and clearinghouse for securities-like tokens. Armstrong responded to the accusations with nothing short of firm resistance, declaring they were a form of government overstep.

Fair Shake PAC: Empowering Pro-Crypto Advocacy

The Fairshake super-PAC includes Andreessen Horowitz, who gave $20 million, and Ripple, who donated $20 million, as disclosed by the super-PAC. Electric Capital also gave $500,000 to the cause. The Fairshake super-PAC supports candidates from both major political parties with sizeable sums going to promote the interests of Representative Patrick McHenry, a North Carolina Republican.

Therefore, the revelation of the donations is evidenced in a cry from the united crypto community urging Congress to develop clear laws for innovation, growth, and consumer protection. Representative of Fairshake, Josh Vlasto, says that the current gift promotes appropriate regulation of blockchain and digital asset advances.

Coinbase’s lobbying activities are in hot trouble, and so are FTX and Binance. Critics say that financial gifts might influence policies and restrictions into oblivion. They have even more cause for concern as cryptocurrency’s credibility and utility are questioned.

That has swelled Armstrong’s fortune to $5.8 billion as Coinbase shares have climbed. One standout in his stock sales of last year: $78 million in cash. Executives historically sell high, struggling as market timers in financial matters. Such moves don’t express an imminent peak in markets largely often.

Armstrong’s acts of giving to charity comport political rules and stay unfettered in an unpredictable environment. The cryptocurrency business is in limbo with no headway but only reading through tweets. Then maybe his dalliances in the United States industry may be quite substantial.

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