Kristin Smith, the executive director of the Blockchain Association, announced on Twitter on Monday, September 12th, that her organization is launching a political action committee. The organization consists of numerous large crypto companies like Binance.US, eToro, Kraken, and Grayscale Investments.
BA Launches a Crypto-Focused PAC
The Blockchain Association, which positions itself as “the unified voice of the blockchain and cryptocurrency industry” stated it is seeking to take that voice to Washington. Seeing that the cryptocurrency sector has grown significantly—and is likely to grow even further—the creation of the PAC is hardly a surprise.
BA PAC will leverage the full might of the crypto industry to support pro-crypto candidates. This is a natural step for a growing industry, and the PAC will mirror the POV of @BlockchainAssn as it identifies candidates to support as they seek office or re-election. We believe crypto is by definition a non-partisan issue. We will support candidates in that spirit, seeking the best champions for this technology no matter which side of the aisle they come from.
Kristin Smith, Executive Director of Blockchain Association
The Association is aiming to add further donations for the upcoming midterm elections to the $70 million already contributed by the crypto sector. In the spirit of the belief that crypto is a non-partisan issue, the PAC is hoping it will contribute roughly equal amounts to democrat and republican candidates.
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The Need for a Crypto-Focused PAC
The creation of this political action committee comes in a year that has seen increased regulatory pressure on crypto. Coinbase, a member of the association, is famously embroiled in a legal battle with the SEC over insider trading allegations, as well as the issue of potentially improperly listing certain securities.
While Gensler’s regulatory moves on crypto have been met with mixed reactions, further government involvement with the sector is all but guaranteed. Apart from the ongoing debate on whether some digital assets are indeed securities, a part of the increased scrutiny is centered on international money laundering operations, and certain governments potentially using crypto to sidestep various sanctions.
The creation of a PAC focused on getting crypto-friendly candidates into office is likely a necessary move at this point. The increased scrutiny the industry is facing could potentially be both disastrous for the sector, and beneficial—a prudent, crypto-friendly regulatory approach could at the very least help alleviate the issue of widespread hacks and theft currently present within the crypto sphere.
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Do you think this PAC will successfully bring crypto-friendly politicians into office in this election cycle? Let us know in the comments below.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.