Moonpay Joins Forces with Coinbase’s Stand With Crypto Initiative
Cryptocurrency payment company MoonPay recently made a strategic contribution to Coinbase’s nonprofit advocacy initiative, Stand With Crypto. The donation, the amount of which was not disclosed, aligns with MoonPay’s efforts to influence the future of the cryptocurrency industry in the United States.
Ivan Soto-Wright, CEO of MoonPay, underscored the importance of the upcoming U.S. election in shaping the industry’s landscape. He advocated for a responsible engagement in the political process to foster a regulatory environment that balances innovation with consumer protection.
Legal Challenges and Political Engagements
This financial backing comes at a critical time for the cryptocurrency sector, especially following Coinbase’s own legal challenges and its proactive political engagements. In June 2023, the U.S. Securities and Exchange Commission (SEC) initiated a lawsuit against Coinbase, alleging violations of federal securities laws for listing 13 tokens deemed as securities. Although Coinbase secured a victory in this ongoing legal confrontation in April 2024, it was soon faced with another lawsuit related to claims of investor deception.
Coinbase has increasingly sought to influence U.S. regulatory frameworks. This initiative stems from the company’s historical interactions with financial regulators, aimed at carving a pathway for dialogue and understanding. Coinbase’s launch of the Stand With Crypto project in November 2023 was a natural extension of these efforts, designed to support candidates who favor crypto-friendly policies.
The company’s involvement in politics marks a continuation of the stance articulated by Coinbase CEO Brian Armstrong in 2020. At the time, Armstrong emphasized an “apolitical culture” within the company, prioritizing focus on its core mission over external political engagements. He noted that even if there was consensus on the presence of issues, agreeing on solutions was often more challenging, making it essential to stay mission-focused.
Launch of Political Action Committee
Coinbase initiated the political action committee (PAC) through its Stand With Crypto project to advocate for pragmatic digital asset regulation. Announced on May 10 via X, the PAC enables its approximately 450,000 members to financially support candidates in the upcoming 2024 U.S. elections. Launched in 2023, the initiative has already gathered over $86 million from users to promote pro-crypto causes, though it remains unspecified how much of these funds will be directed towards the PAC.
Nick Carr, the chief strategist for Stand With Crypto, emphasized the PAC’s objective to back candidates who defend the interests of crypto supporters through the November elections, according to a report by Reuters. This effort is part of a broader campaign that included hosting forums for U.S. presidential candidates before Donald Trump emerged as the likely Republican nominee.
The project also advocates for legislation favorable to cryptocurrencies in Washington D.C., and it evaluates candidates on a scale from A to F. Notable endorsements have been made for Republican Bernie Moreno in Ohio’s Senate race and Democrat Shomari Figures for a congressional seat in Alabama.
Election Implications and FEC Regulations
With the U.S. election just six months away, the outcomes will decide which party controls the House of Representatives, the Senate, and the presidency. The electoral battles are intensifying, especially in races like the Massachusetts Senate seat currently held by Democrat Elizabeth Warren. Warren faces opposition from Republican John Deaton, an attorney known for his legal support to crypto users and his critiques of Warren’s anti-crypto stance.
Under Federal Election Commission regulations, individual contributions to PACs like Stand With Crypto are capped at $5,000, potentially allowing the PAC to amass up to $2.2 billion given its current membership size. In contrast, Super PACs can receive unlimited funds from corporations, with Coinbase itself having donated millions to Fairshake and its related entities.
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