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The cryptocurrency industry is going all out to position itself in the good books of political power, and Coinbase’s latest move is an epitome of this trend. The leading crypto exchange has onboarded Chris LaCivita, former co-campaign manager for Donald Trump’s 2024 campaign, to its Global Advisory Council. This move signals a potential pivot in the relationship between the crypto industry and a possible future Trump administration.
A Calculated Move by Coinbase
Coinbase hiring LaCivita is not a run-of-the-mill hiring but rather a strategic move, as the company moves closer to influential policymakers who might define the future of crypto regulation in the United States. Given the regulatory uncertainty over the industry, such connections can become an essential boon for Coinbase.
This appointment also comes at a time when the cryptocurrency sector is seeking clearer regulatory frameworks. By involving individuals with direct ties to Trump’s political circle, Coinbase may be signaling its intent to influence policy discussions and advocate for a more favorable regulatory environment.
What This Means for Crypto Regulation
The crypto industry in the United States has been under more and more regulatory scrutiny, with the Securities and Exchange Commission in an aggressive mode enforcing compliance and investor protection over any organizations that come under it. In the event that Trump returns to office, this industry can thus potentially move towards deregulation or more business-friendly ground. The fact that Coinbase tends to align with prominent figures in the circle of Trump suggests it can benefit from such possible changes.
This also falls in line with a larger trend in the crypto space: securing political allies to shape policy outcomes. In recent years, cryptocurrency companies have dramatically ramped up their lobbying efforts, donating millions to political campaigns and working with policymakers to ensure their interests are represented.
Potential Benefits and Risks
For Coinbase, the benefits of strengthening ties with Trump’s allies include:
Regulatory Clarity: Potential influence over future crypto regulations, reducing uncertainty for businesses and investors.
Market Confidence: Aligning with a possibly friendlier administration, at least to digital assets, could boost investor confidence.
Expansion Opportunities: A more friendly regulatory environment might encourage innovation and expansion within the U.S. market.
However, there are also risks :
Political Uncertainty: If Trump doesn’t come back for another term, the company’s alignment with his camp may alienate regulators in the case of a different administration.
Public Perception: This may lead some users and investors to think of the company’s political connections as polarizing and thus effect customer trust.
Regulatory Backlash: Alliances with a particular political action or faction bring their own risks, especially as regulatory environments evolve fast.
Future of Crypto-Politics
The move Coinbase has just announced reinforces the belief that cryptocurrency is no longer simply a financial technology but an industry of political importance. Regulatory battles will be continuous, and success in the long term will hinge on the industry’s ability to navigate the political landscape.
Whether this move proves to be a masterstroke or a high-stakes gamble is yet to be seen. There is no doubt about one thing, however: crypto’s presence in politics is increasing, and companies like Coinbase are making sure they are at the table.
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