Banking, finance, and taxes
Crypto Exchange Coinbase Tells a Fib, Forms a PAC
Published:
Last Updated:
Last Monday, cryptocurrency exchange Coinbase told Bloomberg News that both the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) had approved the company’s proposed purchase of three securities broker-dealers. That was not the case, as Coinbase admitted Wednesday.
On Friday, Politico reported that Coinbase had notified the Federal Election Commission (FEC) that it plans to form a political action committee (PAC). The company did not respond to a request for comment. PACs are created for the sole purpose of raising money to spend on U.S. elections.
All that adds up to a busy week for Coinbase, the country’s largest cryptocurrency exchange, which is believed to be contemplating an initial public offering (IPO). Coinbase also said last week that it plans to add five new cryptocurrencies to its exchange: Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX).
The formation of a PAC indicates that the crypto exchange wants a seat at the table when Congress and other agencies get down to the nuts and bolts of how to regulate cryptocurrencies and tokens. Both the SEC and the Commodities Futures Trading Commission (CFTC) had put stakes in the ground related to their ability to regulate coins and tokens. Neither has advanced much beyond the stage of going after allegedly fraudulent coins or tokens.
Coinbase’s acquisition of three broker-dealers would give the company a head-start if it can get SEC and FINRA endorsements to trade tokens as if they were stocks. Forming a PAC and making political contributions is a time-honored way of at least getting heard in the halls of power, so the move makes sense.
In its FEC filing, Coinbase reported that it had collected no money as of June 30, but co-founder Fred Ehrsam has donated $12,800 to Republican candidates for office, according to a report at Coinspeaker. In 2014, Coinbase gave about $3,000 to BIT PAC, according to a CNN report.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
