Coinbase Unveils $25M For Political Donations As Stocks Suffer Worst Day In Over Two Years
In a strategic move to increase its influence in the political landscape, US-based cryptocurrency exchange Coinbase has committed an additional $25 million to Fairshake, a political action committee (PAC), as it prepares to support pro-crypto candidates ahead of the 2026 midterm elections.
Coinbase CEO Armstrong Commits $25M To Fairshake
Coinbase CEO Brian Armstrong confirmed the investment during the companys third-quarter earnings call, stating, Were not going to slow down post-election. We know we need to have pro-crypto legislation passed in this country.
Fairshake, which has garnered backing from major players in the digital asset sector, including Ripple Labs and Andreessen Horowitz, aims to ensure that both Republican and Democratic candidates recognize the importance of cryptocurrency in their platforms.
The committee is poised to spend over $40 million in the lead-up to the 2024 elections, having already invested $140 million in various congressional races across the nation.
In the current political climate, Republican nominee Donald Trump has shifted his stance on cryptocurrency, now embracing the industry after previously labeling it as a scam, with promises including firing the Securities and Exchange Commission (SEC) chair Gary Gensler and Bitcoin as a strategic reserve asset for the nation.
Conversely, Democratic Vice President Kamala Harris has pledged to support a regulatory framework for digital assets if elected. Armstrong noted, We get the US election results in six days, and no matter how you slice it, it will be the most pro-crypto Congress ever.
Coinbases CEO emphasized the growing influence of the crypto voter, suggesting that their impact will only continue to expand.
Despite these political developments, Coinbases stock faced significant pressure following the companys recent earnings report, which fell short of expectations.
Analysts Call Current Crypto Market Dip A Temporary Unwind
Coinbase shares dropped 14.3% on Thursday, marking the steepest decline since May 2022. This downturn was exacerbated by a broader market decline and disappointing earnings from other crypto-related firms, including Robinhood, which saw its stock tumble 15% after reporting weak results.
However, analysts are viewing the current market conditions as a temporary setback. Devin Ryan of JMP Securities described the situation as a temporary unwind in crypto stocks, suggesting that long-term investors may find opportunities amidst the volatility.
The analyst further pointed out that upcoming eventssuch as the US elections and rising crypto pricescould positively impact Coinbases fourth-quarter revenue if trends continue.
Owen Lau, an analyst at Oppenheimer, also noted that the recent stock decline might be tied to concerns about subdued trading volumes and the potential impact of lower US interest rates on Coinbases stablecoin revenue.
At the time of writing, COIN shares were trading at $179 after hitting a three-month high of $223 last Tuesday.
Featured image from DALL-E, chart from TradingView.com
Source: NewsBTC.com
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