Former L.A. Mayor Antonio Villaraigosa joins cryptocurrency company Coinbase as adviser

Antonio Villaraigosa, the mayor of Los Angeles for eight years, will join cryptocurrency company Coinbase as a policy adviser, the company announced Tuesday. (Max Whittaker / For the Times)

Former Los Angeles Mayor Antonio Villaraigosa does not own any cryptocurrency, at least not yet. But it is about to become a player in the industry’s push for friendlier cryptocurrency rules.

Trading platform Coinbase announced Tuesday that Villaraigosa, a Democrat who was mayor of Los Angeles from 2005 to 2013, has taken a paid position on its global advisory council.

In an interview with The Times, Villaraigosa said he would not lobby on behalf of Coinbase but had advised the company on ensuring a “robust, fair regulatory framework” for American customers.

Coinbase said Villaraigosa will focus on how to make financial systems fairer for black and Latino customers. The company estimates that approximately 41% of American crypto investors are black and Latino.

“Crypto users participate in our democracy like everyone else,” Villaraigosa said. “They need regulatory protection.”

Villaraigosa’s hiring is part of Coinbase’s broader promotional and lobbying efforts following years of clashes between the industry and federal regulators, including the Securities and Exchange Commission.

Criminal investigations recently captured two of the crypto industry’s most well-known names: former FTX Chief Executive Sam Bankman-Fried, who was sentenced to 25 years in prison in March, and former Binance Chief Executive Changpeng “CZ” Zhao. He is scheduled to be sentenced Tuesday after pleading guilty to money laundering charges last year.

Coinbase and other firms have argued that the United States should be friendlier to the industry and that clearer rules are needed to help American crypto companies compete with exchanges in countries with looser regulations.

The industry is spending heavily in the 2024 election cycle, signaling a willingness in Washington to boost candidates who support crypto priorities and unseat those who do not.

Read more: How cryptocurrency executives helped the California Senate primary

The policy advisory council that Villaraigosa will join includes former Ohio Rep. Tim Ryan and Republican former Pennsylvania Sen. Pat Toomey, as well as political veterans like John Anzalone, a pollster for Hillary Clinton’s 2016 campaign. President Biden’s campaign in 2020.

Faryar Shirzad, Coinbase’s chief policy officer, said Villaraigosa brings a “sense of community policy” to the group.

Shirzad added that he “understands broader public attitudes, public opinion and public sentiment in a way that’s really helpful.”

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Villaraigosa said Coinbase would aid efforts to create a “level playing field,” including a stablecoin, a type of cryptocurrency that is ostensibly pegged one-to-one to the value of the U.S. dollar or an asset such as gold.

Read more: Meet some of the biggest donors shaping California’s U.S. Senate race

Villaraigosa said cryptocurrency is a promising alternative for Black and Latino investors who face racial discrimination at traditional banks. Crypto platforms could also be an alternative for people sending money, known as remittances, to family members in other countries, she added.

People in the United States sent more than $81 billion abroad in 2022, according to the World Bank. The average fee for a $200 wire transfer payment worldwide was 6.18% in the third quarter of last year, the organization said.

Villaraigosa said the cost of sending money to family members through crypto platforms like Coinbase is “de minimis,” or small.

Since leaving Los Angeles City Hall in 2013, Villaraigosa has taught at the USC Sol Price School of Public Policy and worked as a partner at the consulting firm Actum. He ran a campaign for governor in 2018, finishing third in the primary behind Gov. Gavin Newsom and Republican John Cox.

Newsom tapped Villaraigosa as a top adviser on infrastructure issues in 2022, tasked with helping identify projects that could get federal funding from Biden’s infrastructure bill.

Villaraigosa also advised Banc of California, multi-level marketing company Herbalife, and the AltaMed chain of health clinics.

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This story was first published in the Los Angeles Times.