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Stand With Crypto Sets Up Election War Chest, Backs Candidates Seeking Open Seats

May 9, 2024
    Crypto advocacy group Stand With Crypto is opening its own Political Action Committee ahead of this year’s elections.The group’s own members will support the PAC, though they’re limited to $5,000 contributions.
As a researcher with a background in political finance and cryptocurrencies, I find Stand With Crypto’s decision to open its own Political Action Committee (PAC) an intriguing development. This fast-growing organization of cryptocurrency supporters has been making waves since its inception in August 2023, with over 443,000 people signing on and more than $86 million raised for advocacy operations.A rapidly expanding community of cryptocurrency advocates, Stand With Crypto, has entered the realm of political fundraising by launching its own Political Action Committee (PAC). This new committee will enable direct donations to favored congressional candidates, according to Chief Strategist Nick Carr. The initial list of endorsed candidates includes five individuals vying for open seats in both the U.S. House of Representatives and Senate. However, financial contributions have not yet been made.

In an interview with CoinDesk, Carr expressed his astonishment at the significant expansion of Stand With Crypto since its founding in August 2023. The group now counts over 443,000 members and has amassed over $86 million in funds for advocacy efforts, such as organizing events, town halls, and a presidential candidate forum.

Despite being portrayed as a community-driven initiative, the organization has received significant financial support from corporations, including Coinbase, whose CEO is Brian Armstrong, and Coinbase established it last year.

The new Political Action Committee (PAC), named Stand With Crypto, distinguishes itself from other notable crypto campaign-finance initiatives. These previous efforts have primarily been influenced by a small number of significant digital assets companies, contributing more than $10 million to Fairshake and related PACs. In contrast, these organizations provide unlimited, indirect support to candidates outside of their campaigns. Stand With Crypto’s PAC, acting as the political wing of the 501(c)(4) “social welfare” organization, intends to make direct donations to candidates. The contributions are aimed at individuals who have shown exceptional knowledge and dedication to crypto and blockchain advancement in the United States. The donation amounts will be limited due to the nature of direct contributions, and unlike financial support given to the organization itself, contributing to the PAC necessitates public disclosure of donor identities.

A city councilman from Oregon named Eddy Morales, who is a Democrat and is about to participate in a congressional primary, has been endorsed by the group. On his campaign website, Morales expresses his belief that technologies such as artificial intelligence, blockchain, and others are continually developing and offer people opportunities to amass wealth, control their data, and have influence in the economy of tomorrow. He also intends to work on establishing a regulatory framework to bring clarity to these industries.

The organization also gave its support to three candidates who have previously received favor from other pro-crypto Political Action Committees (PACs): Shomari Figures, the Democratic nominee from Alabama; Rep. Jim Banks (R-Ind.), who recently won his party’s primary for a Senate bid; and Jim Justice, the West Virginia Governor running for the open Senate seat left by Joe Manchin (D-W.V.). Carr mentioned that the group will continue endorsing candidates and has a pool of incumbent members of Congress to consider, as they maintain a grading system based on their crypto-friendliness.

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2024-05-10 13:26