Crypto will be the real winner on November 5, Coinbase's top lawyer says. However, few doubt that crypto is an election issue.
Coinbase Chief Legal Officer Paul Grewal is betting that the next set of elected lawmakers will be crypto-friendly, regardless of who wins the US election.
“We're going to see a pro-crypto Congress emerge regardless of the specific outcome in individual races and the outcome of the presidential race,” Grewal said. Bloomberg Tuesday
Bipartisan support for crypto-friendly legislation is growing on Capitol Hill, he said.
Grewal made these comments in the background of former President Donald Trump and Vice President Kamala Harris facing each other in the elections.
Coinbase is the US's largest listed crypto exchange, and leading to crypto being a key issue in the upcoming vote could tip the scales.
Thawing on Capitol Hill
Grewal seems confident that those efforts are paying off.
He said the House of Representatives passed the Financial Innovation and Technology for the 21st Century Act in May with bipartisan support, and Democrats in the upper chamber are also warming to the industry.
Senate Democrats like Kirsten Gillibrand and Debbie Stabenow are “expressing a real interest in moving that legislation forward,” Grewal said.
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Two senators have launched their own drafts of ambitious legal frameworks for crypto assets.
“We're pleased to understand that the 52 million Americans or more who buy or sell digital property and the homes and members on both sides of the aisle expect Congress to do its job,” Grewal said.
Warchest
An estimate of 52 million comes from Coinbase Own research. The company is one of the biggest contributors to the volatility of the industry $174 million Warchest.
It is a top donor to Fairshake, a political action committee that funnels money to support crypto-friendly candidates running for office.
Crypto industry heavyweights like the Winkelvoss twins — of Facebook fame — have donated heavily to Republicans, who are seen as broadly friendly to crypto.
This is largely thanks to Trump, who has promised to make America the “crypto capital of the planet.”
Coinbase, however, is openly non-partisan, donating almost equally to Democratic and Republican candidates.
Grewal said Bloomberg The company “has been in touch with both the Trump campaign and the Harris campaign as they develop their crypto policies and begin engaging with crypto voters.”
The stakes in this election are high for the crypto industry.
President Joe Biden's administration is seen as hostile to the industry.
Notably, the Securities and Exchange Commission under Chair Gary Gensler has pursued several lawsuits against crypto defendants, including Coinbase.
Grewal insisted that Harris should not mix the administration with the campaign.
While Trump's campaign is more clearly embracing pro-crypto policies, Harris' campaign has “expressed interest and started discussions on what a new approach to crypto and digital assets might look like,” he said.
challenge
Coinbase's push has not gone unchallenged.
The Federal Election Commission is investigating allegations that Coinbase violated campaign finance rules, following a complaint from blogger Molly White and watchdog Public Citizen.
White rejected Coinbase's claims that 52 million Americans care enough about crypto to make it an election issue. She argues that the figure provides little insight into how consumers use or feel about crypto.
Funded by the Federal Reserve and a survey conducted by polling giant Ipsos, 7% of Americans will transact in crypto in 2023.
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