Coinbase becomes first crypto organization to form PAC, donates to political causes
Leading cryptocurrency exchange, Coinbase has become the first crypto organization to form a Political Action Committee (PAC). According to government documents published on Friday, the “Coinbase, Inc. Political Action Committee” was formed in June. According to the U.S. Federal Election Commission disclosure, Coinbase’s PAC has yet to raise or donate any money.
The cryptocurrency exchange recently got into a controversy after it announced that it got SEC approval to list securities. But Coinbase soon retracted the statement and said they didn’t get any such endorsement. According to the exchange’s statement, the SEC was not involved in the approval process. Moreover, the exchange didn’t require SEC approval for the change of control application. While this debacle raised a huge hue and cry in the cryptocurrency community it shines a light on progression to list securities.
See Also: Wall Street team at Coinbase is attracting in billion dollar hedge funds as it tries to fix the biggest pain point in cryptocurrency industry
The Federal Election Commission’s website shows the document is a Form 3x. This is a “Report of Receipts and Disbursements For Other Than An Authorized Committee.” This means that Coinbase’s PAC isn’t currently attached to any candidate running for public office. Moreover, the FEC website reads, “This committee has NOT qualified as a multicandidate committee.”
Political Action Committees are formed mainly for raising funds on behalf of candidates running for public office in the U.S.A. According to the Center for Responsive Politics, these candidates usually represent a particular business or ideological interests. The Center for Responsive Politics is a financial transparency group that tracks money in politics.
According to CNN, the cryptocurrency exchange has already donated over $81,000 towards political causes. The exchange has donated huge sums towards political causes in 2014 and in 2017, according to their financial disclosure documents. Out of this, $78,000 was donated to congressional candidate Brian Forde. He was the former Office of Science and Technology Policy advisor to President Barack Obama. Forde is running for California’s 45th Congressional district.
The remaining $3000 was donated to BIT PAC. BIT PAC is a Political Action Committee which has apparently donated to Republicans Justin Amash and Josh Mandel. This move by Coinbase shows that the digital asset exchange is angling for more sway in Washington DC!
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