Coinbase has often delved into the political realm.
Cryptocurrency Becomes Political
Cryptocurrency trade now rivals the stock market in average turnover. The growth of Bitcoin has exceeded the dollar by 1,500 percent. Any industry with this type of income-producing potential is going to draw a lot of attention, and some of it could be in the form of regulations and other growth-slowing political tactics. Perhaps that is why the crypto exchange site Coinbase has formed their very own political action committee (PAC).
Increase in Visibility
Coinbase has often delved into the political realm. As reported in Filthy Lucre, the company has already donated at least $81,000 to their choice of candidates and causes. Coinbase is also not the only cryptocurrency company to devise their own PAC. BIT PAC became the first-ever political action committee dedicated to supporting pro digital currency candidates. The PACs exist to raise campaign funds and draw more attention to the legal issues surrounding cryptocurrency.
Caution Over Future
The currency system does not face any damaging legal issues or potentially costly political initiatives at the moment. However, as the industry continues to grow, those involved in the currency worry about how federal regulations could harm their operations. The creation of the PACs is an early defensive measure.
Awareness of Changes
Initially, financial experts considered the cryptocurrency trade a trend that would cost investors heavily and then disappear. Government agencies ignored Bitcoin and other arrivals. Eventually, people began to make a profit on their cryptocurrency, forcing the IRS to issue some suggestions to accountants and tax preparers, but little else. At some point, the agency will create a method to ensure they get their share of the income from cryptocurrency users. Coinbase has already dealt with federal agencies seeking information on people they believe use the form of currency to hide their wealth.
Digital currency continues to grow as the industry remains in a constant state of fluctuation. Experts in the industry work to stay ahead of a system that is always adding something new to the mix. Until the market stabilizes, if it ever does, it may be impossible for anyone to predict what new regulatory challenges lay ahead. PACs help to offer some protection for digital currency companies. Stay updated on the changes by visiting information websites like Filthy Lucre.