According to the documents released on July, 20, by the US Federal Election Commission declared that the exchange has formed, ‘Coinbase, Inc. Political Action Committee’ in June 2018. Although, the newly established PAC hasn’t yet raised or donate any money till date.
Moreover, PACs (Political Action Committees) are the groups formed for a singular purpose of raising money to spend on US elections. According to the Center for Responsive Politics, a group that tracks money on politics represents particular business or ideological interests.
Elliot Suthers, Coinbase communications director, the one who confirmed that exchange has launched a PAC but refused to provide further information.
However, Coinbase is now at first to form a PAC by a crypto organization. According to the reports that the exchange has already donated over $81000 for political causes. In addition, the exchange has also donated $78,000 to a Congressional candidate, Brain Forde.
In fact the all cryptocurrencies are backed by a Blockchain Technology, for a quick interference or control by third parties. The technology enhances the security and reduces the transactions costs. The cryptocurrencies are widely operating in a regulatory vacuum since 2009, bitcoin’s debut.
Robert Hockett, law professor at Cornell University decided to launch prime brokerage services in order to get attention of the SEC:
“This raises conflict concerns, given Coinbase’s also running a coin exchange, reminiscent of those that the Commission. It has found when securities firms have attempted to combine these two roles”.
In the month of June, Coinbase launched custodial solutions for institutional investors in digital assets. “Coinbase Custody,” which was first revealed in late 2017, seeks to address the security concerns.
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