Coinbase to Continue Spending to Influence US and Global Policy

Coinbase reportedly plans to continue its “elevated policy spend” through the U.S. presidential election and beyond.

Beyond the U.S. election, the cryptocurrency exchange will continue its policy spend as it faces issues in other parts of the world, Coinbase Chief Financial Officer Alesia Haas said Wednesday (Sept. 4), according to a Seeking Alpha report.

Speaking during Citi’s Global TMT Conference, Haas also said regulation of crypto would create clarity in the sector, Coinbase is pleased to see bipartisan effort in seeking such legislation, and the company will work with any administration or legislator to do so, per the report.

It was reported in June that Coinbase gave $25 million to crypto political action committee (PAC) Fairshake, adding to the massive amount of funds the crypto sector has stockpiled for this year’s election.

“When it comes to our mission of increasing economic freedom by growing the adoption of cryptocurrencies, we are deeply engaged in policy efforts,” Coinbase said at the time.

The shifting regulatory landscape surrounding crypto in the U.S. was a major topic during Coinbase’s most recent earnings call, which was held Aug. 1, and company executives embraced a positive outlook.

“We are increasingly optimistic that the next administration, whether Democrat or Republican, will be constructive on crypto,” Coinbase CEO Brian Armstrong said during the call. “The rhetoric has shifted … there is real energy within both the House and the Senate to pass meaningful legislation.”

Executives said during the call that the approval and launch of ethereum (ETH) exchange-traded funds (ETFs) was a “huge step forward” for regulatory clarity, as it confirmed that ETH is not a security.

They added that Coinbase saw USDC become the first stablecoin to achieve compliance with the European Union’s landmark Markets in Crypto-Assets (MiCA) regulatory framework.

The need for clear regulatory frameworks is one of the most pressing issues facing the crypto and blockchain space, as regulatory clarity is crucial for the mainstream adoption and growth of cryptocurrencies, PYMNTS reported in July.

Clear regulations can protect consumers, reduce fraud and encourage institutional investment, while regulatory uncertainty or overly restrictive regulations can stifle innovation and hinder technological advancements, lead to market instability and drive businesses to more crypto-friendly jurisdictions.