Coinbase to Donate $25 Million to Support Pro-Crypto Candidates Ahead of Midterm Elections
Highlights:
- Coinbase pledges to donate $25 million to Fairshake to support pro-crypto candidates.
- CEO Brian Armstrong emphasizes the need for pro-crypto legislation and engagement.
- Coinbase’s Q3 revenue fell 17% to $1.2 billion, missing analyst expectations.
Coinbase CEO Brian Armstrong announced on X that the company will donate an additional $25 million to Fairshake, a political action committee for the digital asset industry. The lobby group plans to utilize the funds to back pro-crypto candidates ahead of the 2026 midterm elections.
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The crypto exchange has made several donations to Fairshake for the current election cycle. In a blog post on Wednesday, the company affirmed its commitment to “helping Fairshake and its affiliates remain a force in the next election cycle.” Armstrong said the company would not slow down their efforts after the election. He emphasized the importance of passing pro-crypto legislation in the country.
Armstrong also pledges to support its advocacy group, Stand with Crypto (SWC), which aims to reach 4 million members by 2026. SWC works to engage crypto-friendly voters, educate them on policy, and mobilize in key swing states. To date, over 100,000 new voters have been registered in states focused on crypto regulation.
We get the U.S. election results in 6 days, and no matter how you slice it, it will be the most pro-crypto congress ever.
But we're not slowing down post-election.
Today I'm announcing that @coinbase has committed another $25M to support Fairshake PAC, which they will use…
— Brian Armstrong (@brian_armstrong) October 30, 2024
Coinbase Is Ready to Collaborate with Either Harris or Trump Presidency
In its Q3 2024 shareholder letter, Coinbase noted that it is “prepared to work with either administration” in the United States. This applies regardless of whether Democratic candidate and Vice President Kamala Harris or Republican Donald Trump wins the presidency.
Coinbase said:
“Both presidential candidates, as well as politicians across the political spectrum, have adopted more favorable positions toward crypto, a significant shift from previous years.”
Coinbase is currently involved in two legal cases with the Securities and Exchange Commission (SEC). In one case, the regulator accused the exchange of violating existing regulations, while in another, Coinbase sought clarity on the agency’s crypto rulemaking. Additionally, the exchange’s board has approved a share buyback program of up to $1 billion. This program has no specific deadline, allowing the company to repurchase shares according to market conditions.
Fairshake has raised over $200 million for the current election cycle, receiving support from major crypto companies and investment firms like Ripple and a16z. Although super PACs cannot donate directly to political candidates, Fairshake has run advertisements against anti-crypto candidates, including California Senate candidate Katie Porter, who lost her primary.
Coinbase Shares Slide as Q3 Revenue Falls Short of Expectations
Coinbase shares fell nearly 5% in after-hours trading after reporting third-quarter earnings below expectations. Revenue declined 17% to $1.2 billion from $1.45 billion last quarter. Analysts had expected $1.26 billion in revenue. Net income reached $75 million, impacted by $121 million in unrealized losses from lower crypto prices.
Transaction revenue, Coinbase’s largest income source, totaled $573 million, a 27% drop from the previous quarter. Subscription and services revenue decreased 7% to $556 million, which Coinbase attributed to lower average crypto asset prices in its quarterly shareholder letter.
— Brian Armstrong (@brian_armstrong) October 31, 2024
Despite these declines, Coinbase is expanding its offerings, with growth in staking, USDC transactions, and custody services creating a more stable revenue stream. Additionally, Coinbase recently partnered with Visa, enabling Visa debit card holders to instantly deposit funds into their accounts.
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Syed Ali Haider
Ali Haider is a contributing crypto writer at Crypto2Community. He is a crypto and blockchain journalist with over six years of experience and has long advocated for digital freedom and cybersecurity. Haider has been featured in several high-profile crypto and finance outlets, including Coincult, AltcoinBeacon, BTCRead, and more.
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