Regulation
Multicoin Capital to Match Solana’s Donations to Pro-Crypto PAC
Multicoin Capital, a leading investment firm focused on tokens and blockchain companies, has pledged to double every donation Solana makes to the Sentinel Action Fund Super PAC through July 14.
This pledge by Multicoin Capital aims to support the campaigns of four pro-cryptocurrency Republican challengers vying for a seat in the United States Senate.
Sentinel Action Fund’s Pro-Crypto Stance
The candidates, supported 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 been given a “strong crypto support” rating by Coinbase-backed advocacy group Stand With Crypto, underscoring their commitment to advancing the interests of cryptocurrencies.
Kyle Samani, managing partner of Multicoin Capital, said on social media that Sentinel Action Fund is committed to supporting conservative candidates who promote responsible cryptocurrency innovation in the United States.
The PAC itself bills itself as the only conservative Super PAC promoting pro-cryptocurrency candidates and supporting pro-cryptocurrency innovation nationwide.
Source: The Sentinel Action Fund
Reflecting on its recent activities, Open Secrets financial documents indicate that the Sentinel Action Fund, established in 2022, invested heavily in the last election cycle.
The PAC spent $10.2 million opposing five Democratic candidates and contributed $3 million to support 11 Republican candidates, using nearly all of its funds for those purposes.
Furthermore, PAC’s acceptance of donations in numerous cryptocurrencies, including Solana, which occupies a prominent place in Multicoin Capital’s portfolio, demonstrates its deep integration with the cryptocurrency economy.
This pro-crypto stance is in stark contrast to the positions of some incumbents. Bernie Moreno is challenging Senator Sherrod Brown of Ohio, who received an “F” rating from Stand With Crypto, indicating strong opposition to cryptocurrencies.
Brown is seen as an ally of Senator Elizabeth Warren, another crypto industry critic. 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” ratings for their stance on cryptocurrency.
Meanwhile, Sam Brown is attempting to unseat Jacky Rosen in Nevada, who, despite having an “A” rating from Stand With Crypto, primarily for her support of House Joint Resolution SAB 121, is still being targeted by the PAC.
SAB 121 Veto Override Challenges
The cryptocurrency industry is closely watching the U.S. House of Representatives, which will vote next week to overturn the law. President Joe Biden’s Veto of Accounting Bulletin 121 (Article 121).
The contentious bulletin requires cryptocurrency custodians to record customer holdings as liabilities, a rule that has raised alarm in both the banking and cryptocurrency industries.
House Majority Leader Steve Scalise has hinted that the vote could happen as early as Tuesday or Wednesday, following a constitutional mandate after the president’s veto. The measure had previously passed the House by a vote of 228-182.
Overriding the presidential veto requires a two-thirds majority in both the House and the Senate, a tough threshold that is challenging supporters of the withdrawal.
In May, the Senate passed the resolution by a vote of 60 to 38, supported by Senate Majority Leader Chuck Schumer, demonstrating significant bipartisan support.
Leadership and strategic importance
However, the upcoming vote in the House will require a strategic and concerted effort to secure another 60 votes to reach the required 290.
Industry advocates like Paradigm’s Alexander Grieve have pointed to the 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 could be reached in such a short time frame, but remains committed to supporting consumer protection and good governance in the cryptocurrency industry.
The resolution of this vote has substantial implications for the cryptocurrency industry. If the veto is overridden, it would alleviate concerns among banks and cryptocurrency firms about their ability to safely handle digital assets.