Coinbase donates $25 million to super PAC Fairshake days after Biden vetoes crypto custody bill

Top U.S. cryptocurrency exchange Coinbase has donated a further $25 million to Fairshake’s super PAC, according to a blog post on Monday. The lobbying money, which will bolster the campaigns of crypto-friendly congressional candidates in upcoming state primaries, follows in the footsteps of crypto payments company Ripple and venture capital firm a16z, which each donated $25 million last week to Fairshake.

This takes the super PAC's total balance to $161 million for this year’s federal elections, according to CoinDesk. Other Fairshake donors include the Winklevoss twins, Jump Crypto, and Union Square Ventures. A recent report from the consumer advocacy organization Public Citizen found that digital-asset-affiliated super PACs, including Fairshake, have raised the third-highest dollar amount of all super PACs ahead of the 2024 election.

In the congressional races, the most recent national poll suggests the fight remains razor-thin, with Democrats leading by just 0.1%.

Fairshake has spent over $11.3 million of its war chest, with over $10.7 million used to campaign against a single Democratic candidate, Rep. Kate Porter, according to the latest Federal Election Committee data analyzed by OpenSecrets. Porter lost in the California primary in March to fill the seat once held by the late Sen. Dianne Feinstein.

The two active candidates to receive the most Fairshake funding so far are Rep. Dusty Johnson (R-N.D.) and Rep. Josh Gottheimer (D-N.J.), each with over $122,000 in donations. Both representatives were crucial in the drafting and negotiation of the Financial Innovation and Technology for the 21st Century Act, or FIT21.

In addition to contributing to Fairshake, Coinbase last August launched its own independent nonprofit, Stand With Crypto, for advancing pro-crypto legislation. The group has attracted almost 1 million members who are responsible so far for over 200,000 emails and calls to members of Congress, according to the group's chief strategist, Nick Carr.

In a newsletter to constituents, Rep. Anna A. Eshoo (D-Calif.), noted that she voted in favor of FIT21 after 103 constituents contacted her office on the issue, according to sources close to the matter.

But Coinbase’s latest donation coincides with a politically tricky week for crypto. On Friday, President Joe Biden vetoed SAB 121, a bill that would have overturned the Securities and Exchange Commission's policy that prevents traditional financial companies from holding on to their customers’ crypto on their behalf. "My administration will not support measures that jeopardize the well-being of consumers and investors," Biden wrote in a statement accompanying his veto.

Meanwhile, the day before Biden’s veto, former President Donald Trump was found guilty of 34 felony charges for falsifying business records. Just over half of voters agree with the charges, according to an Ipsos poll.

The result is a blow for digital asset lobbyists, as in recent months Trump has been working on crafting his image as the pro-crypto candidate, with a slew of stunts suggesting he would embrace digital asset regulation in office. Addressing the Libertarian Party convention last month, Trump touted this recent conversion to crypto, telling the crowd he would “keep Elizabeth Warren and her goons away from your Bitcoin.” Soon after, his presidential campaign said it would begin accepting donations via any crypto asset accepted through Coinbase.

This story was originally featured on Fortune.com