Stand with Crypto, an organisation advocating for cryptocurrency owners, celebrated a milestone as its membership exceeded 1 million. The group aims to wield political influence, urging policymakers to establish favourable regulations for the digital asset industry while avoiding excessive compliance burdens. Brian Armstrong, CEO of Coinbase, a platform facilitating crypto transactions and a co-founder of Stand With Crypto, emphasised the significant voting power within the crypto community, highlighting its potential impact on policy decisions.

The cryptocurrency sector is actively engaging in US elections, investing millions of dollars to support candidates sympathetic to crypto and oppose those advocating for stringent regulations. Coinbase recently pledged$25 million to the pro-crypto political action committee Fairshake, following similar contributions from Ripple and Andreessen Horowitz. Stand with Crypto has focused its efforts on swing states like Georgia and Arizona, where close election margins underscore the potential influence of its members.

Coinbase has actively engaged with White House officials and the Biden administration to address crypto-related concerns. Armstrong stressed the bipartisan nature of crypto issues, emphasising the need for cooperation to enact necessary legislation. Criticising Biden's veto as a 'bad political move,' Armstrong highlighted the broad support for crypto-friendly measures and the significant constituency within the crypto community. While it remains uncertain if crypto issues will sway votes in the upcoming presidential election, Armstrong believes a subset of the growing voter bloc could prioritise digital asset issues at the polls.

Why does it matter?

The surge in Stand with Crypto's membership was partly catalysed by frustration over President Biden's veto of a measure to challenge the Securities and Exchange Commission's stance on crypto assets. Additionally, there's strong support for a Republican-sponsored bill proposing a new legal framework for digital currencies. Despite bipartisan backing for the bill in the House of Representatives, the White House has expressed opposition, with SEC Chair Gary Gensler cautioning about potential risks.