Coinbase donates $25 million to super PAC Fairshake days after Biden vetoes crypto custody bill

Coinbase, the leading US cryptocurrency exchange, donated another $25 million to Fairshake’s super PAC, according to a blog post on Monday. The lobbying money, which will support the campaigns of crypto-friendly congressional candidates in the upcoming state primaries, follows in the footsteps of crypto payments company Ripple and venture capital firm a16z, which each donated $25 million to Fairshake last week.

This brings the super PAC’s total balance for this year’s federal election to $161 million, according to CoinDesk. Other Fairshake donors include the Winklevoss twins, Jump Crypto and Union Square Ventures. A recent report from consumer advocacy organization Public Citizen found that super PACs tied to digital assets, including Fairshake, are raising the third-highest dollar amount of all super PACs ahead of the 2024 elections.

In congressional races, the latest national poll shows the fight remaining very slim, with Democrats ahead by just 0.1%.

According to the latest Federal Election Committee data analyzed by OpenSecrets, Fairshake has spent more than $11.3 million of its war chest; More than $10.7 million was used to campaign against a single Democratic candidate, Rep. Kate Porter. Porter lost the California primary in March to fill the seat once held by the late Sen. Dianne Feinstein.

The two active candidates who have received the most Fairshake funding so far are Rep. Dusty Johnson (R.N.D.) and Rep. Josh Gottheimer (DN.J.), each with over $122,000 in donations. Both representatives played pivotal roles in drafting and negotiating the Financial Innovation and Technology Act for the 21st Century (FIT21).

In addition to contributing to Fairshake, Coinbase launched its own independent nonprofit, Stand With Crypto, last August to advance pro-crypto legislation. The group has attracted nearly 1 million members, who are responsible for more than 200,000 emails and calls to members of Congress so far, according to Nick Carr, the group’s chief strategist.

Rep. Anna A. Eshoo (D-Calif.) said in a newsletter to voters that 103 voters voted in favor of FIT21 after contacting her office about the issue, according to sources familiar with the matter.

But Coinbase’s latest donation comes during a politically difficult week for crypto. On Friday, President Joe Biden vetoed SAB 121, a bill that would overturn the Securities and Exchange Commission’s policy that prevents traditional financial companies from holding their customers’ crypto on their behalf. “My administration will not support measures that would jeopardize the well-being of consumers and investors,” Biden said in a statement accompanying his veto. he wrote.

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Meanwhile, the day before Biden’s veto, former President Donald Trump was found guilty of 34 felony charges of falsifying business records. Just over half of voters agree with the accusations, according to an Ipsos poll.

The result was a blow to digital asset lobbyists; Trump has made a number of appearances in office in recent months touting his embrace of digital asset regulation as he seeks to build his image as the pro-crypto candidate. Speaking at the Libertarian Party convention last month, Trump touted this latest foray into crypto, telling the crowd he would “keep Elizabeth Warren and her people out of your Bitcoin.” Shortly thereafter, the presidential campaign said it would begin accepting donations through any crypto asset accepted through Coinbase.

This story first appeared on Fortune.com