The cryptocurrency exchange based out of San Francisco, Coinbase, has recently created its very own PAC – political action committee according to documents that were made available to the public in July of 2018. In the United States, a PAC is an organization that works to pool campaign contributions from its members with similar political and policy goals. Once collected the funds are donated against or for ballot initiatives, certain legislation, and specific candidates. In order to form the PAC, Coinbase had to register with the Federal Election Commission.
After the Supreme Court case in 2010, Citizens United v. FEC, the use of PACs was forced into the limelight. They became the subject of quite a bit of controversy with some people viewing them as a way for union and corporate donors to donate large sums to various political campaigns. In the Citizens United decision, the provisions that restricted union or corporate political expenditures for political campaigns were completely overturned. This made it legal for these entities to spend money from their general treasury to finance various political campaigns.
The Importance of the PAC Formation
Organizations such as Coinbase are, to this day, banned from being able to directly contribute to federal candidate campaigns. As a result, they have to rely on PACs. Also, PACs must abstain from coordinating any type of action or material with candidates. In some situations, however, this type of coordination has occurred. As of June 30th, 2018, Coinbase had yet to raise any money through the formation of their PAC.
The Purpose of the Coinbase PAC
According to sources, Coinbase has allegedly secured a hedge fund worth $20 billion for its existing custody service. Those who are familiar with the matter stated that Coinbase is also actively searching for other large hedge funds to partner with.
The PAC formation by Coinbase is being highlighted on Filthy Lucre where individuals can also learn more about happenings in this industry. Being informed about the happenings in this industry can help a person know when making an investment or pulling out of a certain industry is wise. More information about this and other goings-on can be found by visiting the Filthy Lucre website.