Regulation
Multicoin Capital to Match Solana Donations to Pro-Crypto PAC
Multicoin Capital, a leading investment firm focused on tokens and blockchain companies, has committed to matching every Solana donation made to the Sentinel Action Fund Super PAC through July 14.
This commitment from Multicoin Capital aims to strengthen the campaigns of four pro-crypto Republican candidates running for seats in the U.S. Senate.
Sentinel Action Fund’s Pro-Crypto Position
The candidates, who were endorsed by the Sentinel Action Fund, are Sam Brown in Nevada, David McCormick in Pennsylvania, Bernie Moreno in Ohio and Tim Sheehy in Montana.
All four have earned a “strongly crypto-friendly” rating from the Coinbase-backed organization Stand With Crypto, highlighting their commitment to advancing the interests of cryptocurrency.
Kyle Samani, managing partner of Multicoin Capital, said on social media that the Sentinel Action Fund is dedicated to supporting conservative candidates who are proponents of responsible crypto innovation in the United States.
The PAC itself bills itself as the only conservative Super PAC that both advances pro-crypto candidates and supports pro-crypto innovation within the nation.
Source: Sentinel Action Fund
Looking back on its recent activities, Open Secrets’ financial records indicate that the Sentinel Action Fund, established in 2022, invested heavily during the last election cycle.
The PAC spent $10.2 million to oppose five Democratic candidates and contributed $3 million to support 11 Republican candidates, using nearly all of the funds raised for those purposes.
Additionally, the PAC’s acceptance of donations in multiple cryptocurrencies, including Solana, which features prominently in Multicoin Capital’s portfolio, demonstrates its deep integration with the crypto economy.
This pro-cryptocurrency stance stands in stark contrast to the positions of some sitting elected officials. Bernie Moreno is challenging Sen. Sherrod Brown of Ohio, who received an “F” grade from Stand With Crypto, indicating strong opposition to cryptocurrency.
Brown is considered an ally of Sen. Elizabeth Warren, another critic of the cryptocurrency industry. Additionally, Tim Sheehy is running against Jon Tester in Montana, and David McCormick is running against Bob Casey in Pennsylvania, both of whom have less favorable “C” grades on their positions on cryptocurrencies.
Meanwhile, Sam Brown is trying to unseat Jacky Rosen in Nevada, who, despite an “A” rating from Stand With Crypto, primarily for her support of House Joint Resolution SAB 121, is still being targeted by the PAC.
The challenges of lifting the SAB 121 veto
The crypto industry is closely watching the U.S. House of Representatives, which is expected to vote next week to overturn President Joe Biden’s veto of Staff Accounting Bulletin 121 (SAB 121).
The bulletin, which has been a point of contention, requires companies that hold cryptocurrencies to record customer holdings as liabilities, a rule that has raised concerns within the banking and crypto industries.
House Majority Leader Steve Scalise has suggested the vote could come as early as Tuesday or Wednesday, under a constitutional mandate after the president’s veto. The measure had already passed the House by a vote of 228 to 182.
Overriding a presidential veto requires a two-thirds majority in both the House and Senate, a daunting threshold that poses a challenge to advocates of rollback.
In May, the Senate passed the resolution by a vote of 60 to 38, sponsored by Senate Majority Leader Chuck Schumer, reflecting significant bipartisan support.
Leadership and strategic importance
However, the upcoming vote in the House requires a strategic and concerted effort to secure 60 additional votes to reach the required 290 votes.
Industry advocates like Paradigm’s Alexander Grieve have pointed to previous bipartisan support for the FIT21 cryptocurrency market structure bill as a sign of hope, while remaining realistic about the challenges ahead.
Cody Carbone of the Chamber of Digital Commerce expressed skepticism that the necessary consensus can be reached in such a short time frame, but remains committed to advocating for consumer protection and good governance in the crypto space.
The resolution of this vote has significant implications for the crypto industry. If the veto is overridden, it would ease concerns among banks and crypto companies about their ability to handle digital assets securely.