The U.S cryptocurrency exchange known as Coinbase has created its own Political Action Committee (PAC). This is according to details made public on the Federal Election Commission (FEC) website only today, July 21st.
Political Action Committees are organizations in the United States that pool campaign contributions from members with similar ideals, policies and political goals in a bid to donate them to the political campaigns of their preferred candidates, legislation or ballot initiatives.The funds can also be used against the campaigns that do not align themselves with the members of the PAC. The PACs are mandated to register with the Federal Election Commission (FEC).
But Political Action Committees are not without controversy. Many American citizens see them as a means for corporations and other private entities to contribute vast amounts of money to political campaigns in a bid to sway the final outcome of what should rather be a democratic process. The PACs are used by corporations and other private entities to circumvent the requirement that they cannot directly contribute to federal candidate campaigns.
With respect to Coinbase, the exchange has yet to raise any funds through the PAC.
Other Coinbase News
The recently launched Coinbase Custody service that stores digital assets for institutional investors and high net individuals, has been reported to have attracted a hedge fund that is worth close to $20 Billion. The name of the hedge fund has not been disclosed but there is news of the team at Coinbase planning on securing more hedge funds during the year to join the Custody service. There are also reports of the exchange planning to offer margin finance as early as by the end of the year.
All the progress being made by Coinbase is good news for not only the exchange, but for the general cryptocurrency ecosystem. The more institutional investors recognize cryptocurrencies as a viable form of investment, the more likely it is for mainstream adoption of crypto.