Shares of Coinbase Global Inc. (COIN) jumped over 5% in pre-market trading on July 26, 2024, as the cryptocurrency exchange took steps to bolster its influence in shaping crypto regulations and policies ahead of the upcoming U.S. presidential election.
Coinbase announced the addition of three new members to its board of directors, including Chris Lehane, a former Clinton White House staffer and current OpenAI executive. The move is seen as a strategic effort by Coinbase to position itself as a major player in the crypto industry's push to sway U.S. crypto policy.
The crypto industry has emerged as a significant political force, with pro-crypto super PACs like Fairshake, Defend American Jobs, and Protect Progress raising over $230 million to support crypto-friendly candidates. There is anticipation that a potential Republican administration under Donald Trump could be more favorable to the crypto industry, as Trump has expressed interest in taking crypto donations for his campaign.
Coinbase's stock surge was also fueled by the overall positive sentiment in the crypto market, with Bitcoin remaining above $66,000 and other crypto-related stocks like MicroStrategy, Marathon Digital, and Riot Platforms also gaining in pre-market trading.
However, Coinbase's UK subsidiary, CB Payments Limited, was fined $4.5 million by the UK's Financial Conduct Authority (FCA) for breaching financial crime requirements. The FCA stated that the subsidiary had onboarded over 13,000 high-risk users, violating a voluntary agreement aimed at preventing money laundering and other criminal activities.
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