Coinbase, Tether Lobby Democrats in Push for Favorable Legislation

Crypto companies, especially Coinbase and Tether, are now turning to Democrats to push their agenda in Washington. They want to secure rules that favor the industry, even if political power shifts again.

Coinbase and Others Pivot Strategy, Eye Democratic Influence

According to a Bloomberg report, Coinbase has added David Plouffe, a former adviser to Kamala Harris and Barack Obama, to its advisory board. Tether, the stablecoin firm, hired a lobbying firm tied to Joe Biden’s former staff.

Crypto giants understand that Democrats may soon regain control of Congress or the White House. If the industry sides only with Republicans, it risks losing long-term influence. That’s the warning from experts like Austin Campbell of NYU and WSPN USA.

Andreessen Horowitz, a major crypto investor, recently brought in Michael Reed, a former adviser to Democratic leadership in the House. The move signals deeper planning. While the firm supported Trump’s 2024 campaign, it now sees value in building bridges with Democrats.

This new strategy paid off last week. The Senate advanced a key crypto bill known as the GENIUS Act. The vote was 68 to 30 with Sixteen Democrats supported it. As noted by Coinbase’s Chief Legal Officer Paul Grewal, this development, unimaginable a year ago, reflects significant progress in the crypto space.

Senate Expected To Advance GENIUS Act

The Senate vote for the GENIUS Act is scheduled for today with strong expectations of passage, setting the stage for the bill to advance to the House. This vote represents a critical step toward establishing a regulatory framework for stablecoins in the United States.

Still, some Democrats want to stop Donald Trump from profiting off his crypto ventures. Their efforts to amend the bill failed. A broader crypto bill, called the CLARITY Act, is also moving forward but faces delays.

Republicans like Tim Scott say more hearings will happen in July. But Senate action may not come until fall. Meanwhile, others want the House to combine both bills to speed things up. Time, however, is not on crypto’s side. The longer the wait, the more risk of unrelated amendments.

Lobbying Battles Could Shape the Future of Crypto Legislation

Earlier this year, Democrats had blocked the stablecoin bill. They were angry about Trump’s involvement in crypto. Senators like Elizabeth Warren and Jeff Merkley pushed hard against him.

Some Republicans added their own conditions. Josh Hawley wanted limits on tech firms issuing stablecoins. Rand Paul called for an audit of the Federal Reserve. Both ideas failed to gain traction.

Coinbase has also lobbied to allow stablecoin accounts to earn interest. But lawmakers have not agreed. The broader crypto community remains anxious that only one piece of legislation might become law.