The Blockchain Association is launching a PAC to support pro-crypto candidates

Kristin Smith, CEO of the Blockchain Association, announced on Twitter on Monday 12 September that her organization is launching a political action committee. The organization consists of a number of major crypto companies such as Binance.US, eToro, Kraken and Grayscale Investments.

BA launches a crypto-focused PAC

The Blockchain Association, which positions itself as “the unified voice of the blockchain and cryptocurrency industry” stated that it is trying to take that voice to Washington. Seeing that the cryptocurrency sector has grown significantly – and is likely to grow even more – the establishment of the PAC is hardly a surprise.

BA PAC will leverage the full power of the crypto industry to support pro-crypto candidates. This is a natural step for a growing industry and the PAC will reflect the POV of @BlockchainAssn as it identifies candidates to support as they seek office or re-election. We believe crypto is by definition a non-partisan issue. We will support candidates in that spirit, seeking the best champions of this technology no matter which side of the aisle they come from.

Kristin Smith, CEO of the Blockchain Association

The association aims to add additional donations for the upcoming midterm elections to the $70 million already contributed by the crypto sector. In the spirit of the belief that crypto is a non-partisan issue, the PAC hopes that it will contribute roughly equal amounts to Democratic and Republican candidates.

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The need for a crypto-focused PAC

The creation of this political action committee comes during a year that has seen increased regulatory pressure on crypto. Coinbase, a member of the association, is famously embroiled in a legal battle with the SEC over allegations of insider trading, as well as the issue of potentially misquoting certain securities.

While Gensler’s regulatory grip on crypto has been met with mixed reactions, further government involvement in the sector is all but guaranteed. Aside from the ongoing debate over whether some digital assets are actually securities, some of the increased scrutiny is centered on international money laundering operations, and certain governments potentially using crypto to circumvent various sanctions.

The creation of a PAC focused on getting crypto-friendly candidates into office is likely a necessary move at this time. The increased scrutiny facing the industry could potentially be both disastrous for the sector and beneficial – a sound, crypto-friendly regulatory approach could at least help alleviate the problem of widespread hacks and theft currently present in the cryptosphere.

Do you think this PAC will succeed in bringing crypto-friendly politicians into this election cycle? Let us know in the comments below.

About the author

Tim Fries is the co-founder of The Tokenist. He has a B. Sc. in mechanical engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate in the investment team at RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.