Coinbase, the San Francisco based cryptocurrency exchange announced on July 20th the launch of its Political Action Committee that will focus exclusively on handling the political. As a substantial step to secure its future, Coinbase made some documents public that registered its PAC with the Federal Election Commission (FEC). With it, Coinbase becomes the first exchange to have a PAC.
Political Action Committee for Coinbase has been formed to offer Coinbase a platform for the political and economic dialogue at a higher level. As per the American federal law, before setting up PAC and being recognized by FEC, Coinbase was required to collect a donation amount of $1,000 from its members and this fund is needed to be channeled towards the electoral committee that governs the approval procedure of PAC.
The clear inclement Coinbase to edge closer to a financial regulatory committee is to create an influence there and help itself thrive as a crypto exchange. Cryptocurrencies and its exchanges have always faced intense criticism by the politicians and Coinbase is making this effort to bridge the gap and gain control over the regulations.
It is not the first attempt made by Coinbase to edge closer to the policy regulations as in past the Co-founder of Coinbase has donated around $13,000 to the Republicans. With growing interest in more acquisitions as reported by CNN, Coinbase went into an informal meeting to acquire a brokerage firm that would give it rights to list securities also on its platform.
Coinbase has reported to partner with hedge funds so that they can diversify their services and create a strong foothold and have also secured $20 billion hedge fund so that they can expedite the process to moving to offer other financial services. With its own PAC (Political Action Committee), Coinbase has removed the prohibition that held it back from directly contributing to federal candidates securing its future position as a financial institution.
