The crypto industry is ramping up its political influence in the US with a new super PAC to support “pro-crypto leadership” in Congress. The move comes amid growing criticism and scrutiny from lawmakers who see digital assets threatening national security and financial stability.
According to the Financial Times, the super Pac, called Fairshake, received $78 million this week from several crypto companies, including Coinbase, Circle, and a16z. These companies are among the leading players in the crypto space, offering services such as trading, payments, and investing.
Fairshake can take unlimited funds from businesses and individuals and spend them on elections without disclosing the sources or amounts of the donations. The super PAC said it would use the money to back candidates who understand the potential of Crypto and blockchain technology and oppose excessive government regulation and interference.
The creation of Fairshake reflects the growing frustration and anxiety of the crypto industry, which has faced a hostile environment in Washington in recent months. Several lawmakers, especially Democrats, have expressed concerns about the illicit use of Crypto by criminals, terrorists, and rogue states and have called for stricter rules and oversight.
One of the most vocal critics of Crypto is Senator Elizabeth Warren, who has accused the industry of creating a national security risk and facilitating money laundering and sanctions evasion. She has also questioned the environmental impact of crypto mining and the consumer protection issues of digital investing.
Warren and other lawmakers have urged the Biden administration and the Treasury Department to crack down on Crypto and impose more regulations and enforcement. They have also opposed any attempts to create a legal framework to recognize and legitimize Crypto as a new asset class.
Crypto Industry Seeks To Depoliticize Crypto & Educate Lawmakers
The digital industry has also faced legal troubles and scandals that have tarnished its reputation and credibility. Sam Bankman-Fried, the former CEO of FTX, a digital exchange, was sentenced to prison for fraud earlier this year. Binance, another digital exchange, admitted failing to prevent money laundering and sanctions violations on its platform.
The digital industry hopes Fairshake can help break the current negative narrative and misinformation about Cryptocurrency and counter a one-sided dialogue with legislators. Another thing that the super PAC wants is to educate lawmakers and the public on how digital can bring benefits and opportunities; these include financial inclusion, innovation in products & services, and economic growth.
According to COINBASE chief policy officer Faryar Shirzad, the digital industry wants to depoliticize Bitcoin so that misinformed demagogues do not use it as a political football. He said that the industry’s lobbying, grassroots work, Fairshake, and other aspects would provide space for a debate on whether Cryptocurrency was good or bad.
The digital industry also holds that not everything about Crypto is evil, and depending on the intentions of its users, it may have excellent or nefarious effects. The driver responded: We are determined to observe existing laws and regulations strictly and are willing to work with authorities actively to prevent illicit activity.
The crypto sphere believes digital is the future of finance and technology, capable of making a better world for all. The industry hopes Fairshake can give US politicians and the public a favorable impression of digital, creating a warm environment for them.
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