“Stand With Crypto,” an advocacy group launched by Coinbase (NASDAQ:COIN) last year, has set up 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.
Stand With Crypto's PAC plans to fund candidates from both major parties in the upcoming elections for the House of Representatives and the Senate, drawing on its base of 440,000 members. According to Federal Election Commission records, other crypto-focused super PACs like Fairshake, Defend American Jobs, and Protect Progress have already raised over $110 million this election cycle.
This move is part of a larger effort by the crypto industry to influence U.S. political outcomes, particularly after facing increased regulatory scrutiny.
This surge in political funding by crypto entities follows the criminal conviction of FTX founder Sam Bankman-Fried, who was found guilty of misappropriating customer funds, some of which were funneled into political donations.
Stand With Crypto differs from super PACs in that it directly collects and distributes funds to candidates rather than operating independently. This allows for closer cooperation with campaigns, although it is subject to stricter donation caps.
The PAC supports a diverse slate of candidates including Jim Banks, a Republican Senate candidate in Indiana; Jim Justice, also a Republican Senate candidate, in West Virginia; Shomari Figures, a Democrat aiming for a seat in Alabama's Second District; Eddy Morales, a Democrat running in Oregon's Third District; and Troy Downing, a Republican candidate for Montana's Second District.
"The goal is to endorse candidates and support candidates that are protecting the rights of our advocates of Stand With Crypto throughout November," Nick Carr, chief strategist at Stand With Crypto, told Reuters.
Inside the club, Coinbase CEO Armstrong complained about politicians not giving due regard to the crypto industry, even though, according to Coinbase's calculations, crypto holders outnumbered EV owners by fivefold and union members by 3.5 times. He, along with others on stage, roused cheers with rally-style queries and highlighted the importance of exercising one's voting power.