Crypto Nonprofit Launches New PAC to Support Industry-Friendly US Congressional Candidates

The US elections in November could become a major event for the cryptocurrency industry, as the government’s crackdown on the sector has created an unclear and uncertain outlook for investors and companies.

As such, voters and key figures are considering the positions of presidential and congressional candidates in the sector as a determining factor to consider. Recent reports revealed that a nonprofit organization has launched a new Political Action Committee (PAC) to support industry-friendly politicians running for Congress.

Fundraising for pro-crypto candidates

On Friday, Reuters reported on Stand With Crypto’s newly launched project to raise money to support pro-cryptocurrency politicians running in the November elections.

Stand With Crypto is an advocacy group started by Coinbase in 2023 and operates as a 501(c)(4) nonprofit organization, according to its website. The organization has nearly 450,000 members and “advocates for clear, common-sense regulations for the crypto industry.”

The Stand With Crypto PAC seeks to raise money for a bipartisan slate of candidates running in the House and Senate and place those who support cryptocurrencies and blockchain in office.

Nick Carr, the nonprofit’s chief strategist, told Reuters: “The goal is to endorse candidates and support candidates who protect the rights of our defenders… throughout the month of November.”

The PAC’s endorsements include Jim Banks, a Republican running for Senate in Indiana; Jim Justice, a Republican running for Senate in West Virginia; Troy Downing, a Republican running to represent Montana’s Second District; Shomari Figures, a Democrat running to represent Alabama’s Second District; and Eddy Morales, a Democrat running to represent Oregon’s Third District.

According to the outlet, other crypto super PACs such as Fairshake, Defend American Jobs, and Protect Progress have raised more than $110 million during this election cycle. Supper PACs differ from Stand With Crypto PACs in that they can receive unlimited size donations but cannot coordinate directly with campaigns.

A recent report from Public Citizen found that more than half of the money raised by most of these super PACs comes directly from corporate spending like Coinbase and Ripple Labs. The remainder of the funds were donations from billionaire executives and venture capitalists, including the founders. from venture capital firm Andreessen Horowitz, the Winklevoss twins and Coinbase CEO Brian Armstrong.

The role of industry in politics

Super PACs like Defend American Jobs say the industry already plays a role this election cycle. The organization felt victorious after four successful candidates won the Indiana primary on Tuesday, including Jim Banks and Mark Messmer, a Republican running to represent the state’s Eighth District.

However, the industry’s participation in this election campaign has faced some scrutiny from US regulators. During the trial of FTX founder Sam Bankman-Fried, prosecutors alleged that SBF used its clients’ funds to donate more than $100 million to US political campaigns, raising concerns.

Despite this, crucial industry figures continue to advocate for a clearer, more user-friendly regulatory framework in the country. The US House of Representatives recently passed a bill in the Senate to override some Securities and Exchange Commission (SEC) policies.

Ultimately, politicians heavily criticized the SEC’s “over-the-top” actions against the crypto industry. US senator Cynthia Lummis and the chairman of the Financial Services Committee, Patrick McHenry, have expressed on several occasions their concern about the regulator’s “unnecessary” repression against the sector, calling for a better and less aggressive perspective in the United States.