Coinbase, the prominent crypto exchange and wallet provider, has established a political action committee (PAC). PACs are a means of pooling contributions towards political campaigns, as it is illegal for companies in the U.S. to directly donate money to fuel a desired political agenda. PACs are registered with the Federal Election Commission and a document that went public shows that at the moment Coinbase has just created the committee, and so far it has no funds raised.
PACs are seen as quite a controversial phenomenon since they donate to campaigns, usually rooting for a certain candidate, legislation or ballot initiative. Some claim that they are a way out for companies to directly finance companies with large sums of money. However, PACs can also help a campaign by non-financial means, for example, by spreading the word.
WHY IS THIS IMPORTANT?
- Being a large player in the world of crypto, it can be expected that if Coinbase is to financially aid a political campaign, it will be one that is sympathetic to crypto.
- This potentially creates a new way to donate to political campaigns.