San Francisco-based cryptocurrency exchange Coinbase has filed for a Political Action Committee (PAC) as major crypto entities in the United States push for crypto-friendly regulation. The PAC formation comes as the U.S. gears up for its midterm elections.
Called the Coinbase Innovation PAC, the effort will focus on lobbying for pro-crypto regulation at a time when crypto market interest is at a peak. This is not the first PAC that Coinbase has formed, with one forming in 2018 and lasting a year.
Coinbase vying for crypto-friendly politicians
Crypto-focused PACs are becoming a bigger trend, with the industry keen on getting crypto-friendly politicians hired. Coinbase itself has spent over a million on lobbying, and it does not take political sides, contributing to both parties.
It’s no secret that crypto insiders and players want to get crypto regulation going in a positive spirit, of course. A Politico report also notes that Sam Bankman-Fried, the head of FTX, is also working on getting pro-crypto regulation approved. Bankman-Fried spent $5.2 million via two super PACs to support Joe Biden’s election.
The U.S. Congress and other lawmakers will play a huge role in how the U.S. crypto market turns out to be, especially this year. There are several signs pointing to new regulatory announcements in 2022, which will enormously impact the market.
US regulations incoming as crypto takes limelight
Until recently, the U.S. had been mostly sitting on the sidelines when it came to crypto regulation. The country’s officials have been deliberating how to go about regulating the novel asset class. The SEC has been spending some of its time instead of going after projects that it says have been violating securities laws, including Ripple.
But now, with the market much more popular than it was a few years ago, they have no choice but to form clear-cut legislation. One of the key priorities has been stablecoins, which has become a major talking point in recent months. The SEC, meanwhile, says that crypto exchanges will face more scrutiny.
As this has been happening, CBDCs have also come to the forefront of discussions. Governments the world over are focused on testing the idea, and the Federal Reserve Chairman even believes that they can coexist with stablecoins.