Crypto Company Raises Funds To Support Pro-Crypto US Presidential Candidates

Crypto companies will inject funds into US presidential candidates. (Photo; Doc. The Currency Analytics)

JAKARTA - A number of large crypto companies, such as Coinbase, Circle, and a16z, raised $78 million (around IDR 1.2 trillion) to fund Fairshake, a political action group (PAC) that supports presidential candidates who are friendly to the crypto industry. The funds will be used to finance political campaigns and advertising ahead of the 2024 US presidential election.

Faryar Shirzad, head of policy at Coinbase, said that the purpose of this fundraiser was to promote "pro-crypto leadership" in Washington. He added that crypto companies do not want to be politically targeted by politicians who do not understand the social benefits of crypto technology.

"We will do everything necessary to depolitize crypto. Our lobbying efforts, the work of grassroots, and now Fairshake will create space for public debate about values, not our industry being used as political spheres for demagog who don't understand the social benefits of this technology," Shirzad said in a statement.

According to public documents, Coinbase is expected to spend around $4 million for lobbying efforts this year. Meanwhile, Circle, the company behind USDC stablecoin, has spent about $760,000 (approximately IDR 11.8 billion) on similar initiatives since 2021. These two companies, along with a16z, are the largest investors in Fairshake, a PAC that can receive unlimited donations from companies and individuals.

The move demonstrates the increasingly high commitment of crypto companies to navigate and form a growing regulatory landscape in the US. Currently, the crypto industry is still facing challenges from various parties, including regulators, legislators, and law enforcement.

Elizabeth Warren's Anti-Crypto Attitude

One of the biggest critics of the crypto industry is Democratic Senator Elizabeth Warren, who has frequently called for firm action against unlawful crypto activity. In October, he along with about 100 other members of Congress, sent a letter to President Joe Biden and Finance Minister Janet Yellen, urging them to take steps to protect national security from crypto threats.

These demands arise in response to reports showing the involvement of digital assets in fundraising activities by militant groups in the Middle East, such as the Taliban and Hamas. In a recent interview with the Financial Times, Warren said that digital assets create national security risks and attract criminals into crypto due to lack of regulation.

"In fact, some crypto actors aggressively advertise that they do not follow international money laundering rules, by showing big signs that read, 'Wash your side here'," Warren said.