Fiona Nanna, ForeMedia News

5 minutes read. Updated 7:20AM GMT Thurs, 7th November, 2024

Coinbase CEO Brian Armstrong saw his fortune swell by over $2 billion this week following a substantial rally in Coinbase stock, marking one of the most successful Election Day outcomes for the cryptocurrency sector. Armstrong’s wealth increase came as Coinbase shares jumped 31%, its largest daily gain ever, fueled by victories for pro-crypto candidates in numerous races across the United States. The election signaled a growing political influence for the crypto industry, demonstrating Armstrong’s strategic role in advancing its regulatory acceptance.

The surge in Coinbase’s stock value highlighted the effectiveness of Fairshake, the Coinbase-backed political action committee (PAC). Fairshake reported that out of the 58 candidates it supported, 46 claimed victory, while results for 12 contests are still pending. Armstrong’s holdings of over 34.8 million Class A and B shares in Coinbase added approximately $2.1 billion in value, bringing his stake to an estimated $9 billion.

Crypto’s Political Victory and Market Gains

Brian Armstrong, who co-founded Coinbase in 2012 and brought it public in 2021, expressed his satisfaction in a post on X (formerly Twitter), stating, “Being anti-crypto is simply bad politics.” Armstrong’s statement followed the Ohio Senate victory of Republican Bernie Moreno, a prominent blockchain entrepreneur, who defeated Democrat Sherrod Brown. Moreno’s success, which has been linked to substantial crypto-backed funding, has been instrumental in securing a majority for Republicans in the Senate.

Crypto assets also saw remarkable gains, with Bitcoin climbing 9.5% to an unprecedented high of $76,400. This growth underscores the optimism around the potential for a friendlier regulatory environment in the U.S. and the strategic success of crypto-focused PACs in influencing the election outcomes. The Coinbase-aligned “Stand With Crypto Alliance” gave Brown an “F” grade and Moreno an “A,” highlighting the stark contrast in candidates’ views on digital assets.

Coinbase’s Political Campaign and Strategic Impact

Brian Armstrong has long advocated for legislative clarity on cryptocurrencies, especially amid ongoing scrutiny from the Securities and Exchange Commission (SEC). In 2022, the SEC filed a lawsuit against Coinbase, alleging that the company sold unregistered securities. Coinbase is now engaged in a legal battle to defend its operations, seeking a jury trial to address the case.

Armstrong has taken significant steps to build political support, with Coinbase emerging as one of the top corporate donors in the 2024 election cycle. Coinbase funneled over $75 million into pro-crypto initiatives, with Armstrong personally donating more than $1.3 million to various candidates. Notably, Coinbase focused solely on congressional races, sidestepping the presidential contest to concentrate resources on building a coalition of pro-crypto legislators.

Paul Grewal, Coinbase’s Chief Legal Officer, also voiced his stance on the importance of regulatory engagement. On Election Night, Grewal urged the SEC to reconsider its stance on crypto regulation, emphasizing the need for constructive dialogue. Armstrong endorsed Grewal’s post, adding his voice to the growing demand for transparent, forward-thinking regulation.

A Changing Regulatory Landscape for Crypto

With substantial influence in Washington, Coinbase aims to champion the rights of cryptocurrency firms against regulatory hurdles. Armstrong has increased his presence in the capital, frequently meeting with legislators to advance the discourse around clear and progressive crypto regulations.

Looking ahead, Coinbase plans to further its political engagements, with an additional $25 million committed to support pro-crypto initiatives in the 2026 midterm elections. As the industry continues to rally around favorable regulatory changes, Armstrong’s strategic advocacy is likely to shape the future of cryptocurrency in the U.S. and beyond.

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“Coinbase CEO Brian Armstrong’s wealth surged over $2 billion post-election as pro-crypto candidates triumphed. Learn how crypto politics are reshaping U.S. regulation.”