Stand With Crypto, an alliance of 440,000 crypto supporters, announced it will create a political action committee (PAC) to donate to crypto-friendly politicians ahead of the November U.S. elections.
The PAC has identified five initial candidates from both parties that will run for seats in the Senate and House of Representatives. The committee will be entirely supported by contributions from Stand With Crypto’s growing constituency. Once those donations are received, the PAC will distribute the funds directly to its favored candidates to aid in campaign support.
“A uniting movement like this is significant in my opinion,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “From the launch in August of last year to surpassing 400,000 members already, it shows that the broader crypto community is working to support political leaders that will not only enable but encourage innovation in the U.S.”
Bolstering Support
Apart from the PAC, Stand With Crypto has raised over $86 million, which the organization has used to fund informational events and crypto town halls. The group was launched by Coinbase in an effort to bolster crypto support.
Though it has touted itself as a grassroots organization, over half of its donations have come from Coinbase CEO Brian Armstrong. There are still enough enthusiasts in the organization, however, to set the PAC apart. Most of the other digital assets PACs have been dominated by big-name companies.
Many of those same cryptocurrency exchanges have been under extreme scrutiny from legislators, including SEC lawsuits against Coinbase, Binance, Robinhood, and others. Despite regulatory issues, there has been a substantial uptick in the crypto market in the early months of 2024.
Ramping Up
Stand With Crypto hopes to keep the positive trend going, but it may take some time to ramp up. Because the new PAC’s donations will go directly to politicians, donors will have to identify themselves and they will be capped at a $5,000 contribution. Still, those constraints shouldn’t weigh too heavily on the PAC given its rapid growth.
The group has already identified other candidates it plans to support. Stand With Crypto keeps tabs on the legislators that back crypto and ranks them on their crypto friendliness. The organization believes increasing political support is a necessary step to keep America current on cryptocurrency.
“The U.S. has been falling behind the UK and EU on regulatory adoption, and the Stand with Crypto movement is proof we need to catch up,” Hugentobler said. “A sound framework will enable companies to work in confidence and compliance, and help the U.S. continue to be a leader in innovation. “