Coinbase Global Inc. (COIN) remains bullish on the emergence of a pro-cryptocurrency Congress, regardless of the results of the upcoming U.S. presidential election. The company’s Chief Legal Officer, Paul Grewal, recently expressed confidence in bipartisan progress on crypto legislation during an interview with Bloomberg TV.
Key Developments: Grewal, who is widely recognized for advocating Coinbase’s regulatory positions, stressed the importance of clear regulatory frameworks for the cryptocurrency sector. He pointed to the advancement of the FIT21 bill, often referred to as the “crypto bill,” as a sign of growing legislative momentum. “We expect, even as the presidential campaign heats up, to see meaningful progress on this legislation in the fall, with both parties showing support,” Grewal stated.
In preparation for any political outcome, Coinbase has proactively engaged with both the Donald Trump and Kamala Harris campaigns. Grewal highlighted that the Trump campaign has been more forthcoming with specific proposals supporting digital assets. However, he noted that the Harris campaign has also shown a willingness to discuss the crypto agenda, despite the current administration’s aggressive regulatory stance under SEC Chair Gary Gensler.
Implications for Traders: For investors and traders, Coinbase’s active involvement in the political process underscores its commitment to shaping a favorable regulatory environment for digital assets. The firm’s substantial financial contributions, exceeding $90 million, have been directed at supporting industry-friendly candidates, with the bulk of this funding channeled to Fairshake, a pro-crypto super PAC. This political strategy could help mitigate regulatory risks that have recently clouded the crypto market.
Market Reaction: Despite the optimism expressed by Grewal, shares of Coinbase closed down by 7.76%, settling at $169.13 on Tuesday. The decline highlights the ongoing volatility surrounding crypto-exposed stocks, largely driven by regulatory uncertainties and market sentiment.
Takeaway: Coinbase’s strategic positioning suggests that it is betting on a more favorable regulatory climate, regardless of who wins the next U.S. presidential election. By engaging with both major political camps and advocating for clear rules, the company aims to drive regulatory clarity that could reduce risk premiums for crypto assets.
