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Investment of 11 billion yen by virtual currency companies
Towards the fourth quarter of 2023, U.S. listed company Coinbase, stablecoin issuer Circle, and venture capital Andreessen Horowitz’s crypto investment arm a16z, among others, filed a lawsuit against the super PAC (special political action committee) Fairshake. It has been revealed that a total of $78 million (approximately 11.2 billion yen) has been provided.
The funds are part of lobbying efforts and will be used to elect pro-cryptocurrency legislators in next year’s presidential election and promote U.S. cryptocurrency policy.
The background to this activity is that the bipartisan stablecoin draft proposed in the middle of this year and a bill aimed at establishing a regulatory framework for digital assets have not made significant progress.
The investment in Fairshake represents a new development for an industry that has until now been politically inactive. Coinbase has kept its lobbying budget to about $4 million in 2023, and Circle has kept it to about $760,000 since 2021, according to publicly available data.
Fairshake’s super PAC has so far committed a total of $292,000, with the majority going to Patrick McHenry, co-sponsor of the stablecoin bill and former chairman of the House Financial Services Committee. It was done. However, McHenry is not seeking re-election in 2024.
connection:US House Republicans submit virtual currency bill aiming to clarify regulations
Criticism of virtual currencies grows in the US Congress
Meanwhile, in Washington, DC, opponents of cryptocurrencies, including Democratic Sen. Elizabeth Warren, are creating a critical atmosphere. Warren recently criticized Coinbase, the Blockchain Association, and CoinCenter in her letter to the company, saying they are “hiring former government officials to block the passage of anti-money laundering legislation.” .
In addition, the arrest of former FTX.com CEO Sam Bankman-Fried for fraud and reports that Binance has been lax in anti-money laundering measures have made the US Congress’ view of cryptocurrencies even tougher.
Faryar Shirzad, Coinbase’s chief policy officer, has emphasized that the company is independent from political influence and pursues its own interests and the social value of its technology.
We will do everything we can to depoliticize crypto. Through lobbying, advocacy, and now Fairshake, we aim to promote the social benefits of technology and prevent our industry from being used as a political tool.
Gemini co-founders Cameron and Tyler Winklevoss, Silicon Valley investor and Fairshake member Ron Conway, and angel investor Fred Wilson are also participating in the effort.
connection:U.S. Coinbase strongly opposes Warren’s claims, saying they are “misrepresenting efforts to comply with the law”
The post Coinbase and other U.S. Web3 companies invest heavily in political action committees to support elections for virtual currency policy advocates appeared first on Our Bitcoin News.
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