Coinbase Commits $25 Million to Fairshake PAC Amid Stock Decline
Coinbase, a US-based cryptocurrency exchange, has allocated an additional $25 million to Fairshake, a political action committee (PAC), to support pro-crypto candidates ahead of the 2026 midterm elections.
Coinbase CEO Armstrong Commits $25M To Fairshake
Brian Armstrong, Coinbase CEO, confirmed this investment during a third-quarter earnings call, emphasizing the need for pro-crypto legislation. Fairshake, supported by significant figures in the digital asset sector like Ripple Labs and Andreessen Horowitz, aims to integrate cryptocurrency into both Republican and Democratic platforms.
The committee plans to spend over $40 million leading up to the 2024 elections, building on an earlier investment of $140 million in congressional races nationwide.
Currently, Donald Trump, the Republican nominee, has shifted his viewpoint on cryptocurrency, now supporting it after previously criticizing the industry. He has proposed dismissing SEC chair Gary Gensler and suggested Bitcoin as a strategic reserve asset. Meanwhile, Democratic Vice President Kamala Harris advocates for a regulatory framework for digital assets. Armstrong noted that regardless of election outcomes, the upcoming Congress will be the most pro-crypto ever.
Armstrong highlighted the increasing influence of the "crypto voter," indicating their impact is expected to grow.
Despite these developments, Coinbase's stock faced pressure after the company reported earnings below expectations.
Analysts Call Current Crypto Market Dip A ‘Temporary Unwind’
Coinbase shares fell 14.3%, marking the largest decline since May 2022, influenced by broader market downturns and disappointing earnings from other crypto firms like Robinhood, which dropped 15%. Analysts view this market dip as a temporary setback. Devin Ryan of JMP Securities described it as a “temporary unwind,” suggesting potential opportunities for long-term investors amid volatility.
Ryan also indicated that upcoming events, including US elections and rising crypto prices, could enhance Coinbase’s fourth-quarter revenue if trends persist. Oppenheimer analyst Owen Lau mentioned that concerns about reduced trading volumes and the effects of lower US interest rates on Coinbase’s stablecoin revenue may have contributed to the stock decline.
As of now, COIN shares are trading at $179, down from a three-month high of $223 reached last Tuesday.
Featured image from DALL-E, chart from TradingView.com.