Politicians might not be clueless on Cryptocurrencies for long.
Over the weekend, it was made public that Coinbase is launching a Political Action Committee.
If you’re not yet familiar with the term, a PAC is a legal way for voters who have similar views of how the US political sphere should be shaped, to pool their money together in one organization to influence elections.
More importantly, as is the case with Coinbase, PACs are basically the only legal way for corporations to directly influence elections, since they cannot openly donate large sums of money to candidates themselves.
Overall, the best way to understand the motivation behind this move could be to term it a protective measure against whatever the government could do, in response to Coinbase’s efforts to become a fully regulated Crypto exchange.
Most recently, the company seems to have secured the participation of another large company for its planned enterprise-scale custodial service, to the tune of $20 billion.
With this in mind, it would not be illogical to assume that they are looking to protect the further growth of their company from unwanted, negative attention from the government, including from powerful regulatory agencies like the SEC.
By influencing who wins the next round of elections, Coinbase would be a big player in terms of deciding how much support for Crypto will eventually exist at the highest possible level of our government.
It should be noted, however, that based on history, it will take very large sums of money to do so successfully.
If you’re not familiar with the trends in PAC donations, look no further than the Open Secrets website and its continuous report on the subject.
For now, suffice it to say that it will at least require several million dollars per election.
With a 2017 profit of $1 billion, raising that level of funds might not be a problem for Coinbase. Furthermore, with this launch, rides the first wave of chances for Crypto to break through to some of its, arguably, staunchest detractors.
By: BGN Editorial Staff