Fairshake Secures $24.5 Million from Coinbase to Propel Crypto and Blockchain Advances for the 2024 US Elections

Federal political action committee  Fairshake  has received a substantial contribution of $24.5 million from the cryptocurrency platform  Coinbase , totaling $85 million in contributions for the committee. On top of Coinbase's significant corporate donation, CEO Brian Armstrong personally added $1 million to what he calls a 'war chest,' aimed at supporting pro-crypto politicians. 

This financial backing positions Coinbase alongside prominent contributors like a16z and Ripple, with $20 million donated, and Electric Capital, which contributed $500,000, along with an additional $100,000 from spokesperson Josh Vlasto as a strategic response to the heightened regulatory scrutiny facing the cryptocurrency industry from the US government.

"The cryptocurrency community is rallying to elect leaders who are advocates for American innovation and job creation. It’s about time Congress and the administration enact robust and sensible regulations that foster innovation and growth, shield consumers, and root out bad actors,\" commented Josh Vlasto, a representative from Fairshake. 

Fairshake endorses candidates from both the Democratic and Republican parties who exhibit a favorable stance towards cryptocurrencies. As of now, the committee’s most significant financial outlays have been directed toward supporting Representative Patrick McHenry, a Republican from North Carolina who has opted not to run for re-election. Moreover, Fairshake has shown support for various other political figures, including Republican Representative Dusty Johnson from South Dakota, Democrat Josh Gottheimer from New Jersey, and Republican Tom Emmer from Minnesota. 

"Backing candidates from both sides of the aisle who embrace a long-term vision for technology is crucial for creating clear regulations for blockchain technology and digital assets. The cryptocurrency industry is at a critical juncture in the US, and without a distinct regulatory framework for entrepreneurs, we risk losing innovation overseas while failing to protect consumers from dishonest actors,\" stated Collin McCune, the head of government relations at Andreessen Horowitz, in a formal statement.

In the last quarter of the previous year, Fairshake reported that it raised $78 million, earmarked to assist candidates who are sympathetic to cryptocurrency and blockchain technology as they gear up for the 2024 elections in the United States.

US Cryptocurrency Industry Faces Increasing Regulatory Pressure

The cryptocurrency landscape in the United States is still feeling the heat from a regulatory crackdown that commenced last year. face challenges According to a report from litigation advisory firm Cornerstone Research, the SEC has initiated the highest number of crypto-related enforcement actions in 2023 compared to any year since 2013, indicating that digital assets have become a significant focus for the commission. Despite recently approving 

 last month, the SEC seems to be adopting a \"regulation by enforcement\" approach in the realm of digital assets instead of establishing a well-defined regulatory framework for businesses to comply with. spot Bitcoin ETFs Recently, members of the Republican leadership in the House Financial Services Committee have called for a re-examination of a rule put forth by the Consumer Financial Protection Bureau (CFPB) last November, expressing concerns about its ambiguous implications on digital assets. 

This proposed rule aims to empower the CFPB to regulate \"larger nonbank entities\" that provide services like digital wallets and payment apps. It suggests that nonbank financial services dealing with over five million transactions each year should follow the same regulations as large banks and credit unions.

Should this rule be enacted, it may inject additional regulatory uncertainty, which could jeopardize the functionality of the digital asset landscape, particularly regarding transactions involving digital currencies.

Amidst the shifting dynamics of the US cryptocurrency sector, organizations like Fairshake are actively securing contributions to advocate for the interests of this burgeoning industry, striving to gain political clout amid ongoing regulatory hurdles.

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