“Stand With Crypto,” an advocacy group launched by Coinbase (NASDAQ:) last year, has created a new political action committee (PAC) to support political candidates who favor cryptocurrency policies.
The well-orchestrated spectacle is a clear indication that the crypto lobby, backed by a war chest of over $85 million, is ready to make a strong impact in this year's elections.
The Stand With Crypto PAC plans to fund candidates from both major parties in the upcoming House and Senate elections, leveraging its 440,000-member base. According to Federal Election Commission records, other cryptocurrency-focused super PACs such as Fairshake, Defend American Jobs, and Protect Progress have already raised more than $110 million this election cycle.
This move is part of a larger effort by the crypto industry to influence US political outcomes, particularly after facing increased regulatory scrutiny.
This increase in political funding by crypto entities follows the criminal conviction of FTX founder Sam Bankman-Fried, who was found guilty of misappropriating client funds, some of which were funneled into political donations.
Stand With Crypto differs from super PACs in that it raises and distributes funds directly to candidates rather than operating independently. This allows for closer cooperation with campaigns, although it is subject to stricter donation limits.
The PAC supports a diverse slate of candidates, including Jim Banks, Republican Senate candidate in Indiana; Jim Justice, also a Republican Senate candidate, in West Virginia; Shomari Figures, a Democrat running for a seat in Alabama's Second District; Eddy Morales, a Democrat running for Oregon's 3rd District; and Troy Downing, Republican candidate for Montana's 2nd District.
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“The goal is to get behind candidates and support candidates who protect the rights of our Stand With Crypto advocates throughout November,” Nick Carr, chief strategist at Stand With Crypto, told Reuters.
Inside the club, Coinbase CEO Armstrong complained that politicians don't pay enough attention to the crypto industry, even though cryptocurrency holders outnumbered cryptocurrency holders by five times, according to Coinbase's calculations. electric vehicle owners and union members by 3.5 times. He, along with others on stage, sparked cheers with rally-style questions and stressed the importance of exercising voting power.
