The Scoop
Cryptocurrency exchange Coinbase is bringing on two big names to help shape policy in its fast-growing industry: Former Sen. Kyrsten Sinema and Chris LaCivita, President Donald Trump’s co-campaign manager in 2024.
The hires to Coinbase’s Global Advisory Council, shared first with Semafor, demonstrate the bullish view the crypto industry is taking on Trump’s second term. Sinema, the Arizona Independent who pushed for crypto-friendly legislation as a senator, will be picking up where she left off by working to get bipartisan deals through a closely divided Congress.
Trump’s administration is decidedly more pro-crypto than the Biden administration, as he’s already shown with early moves — but Sinema said she’ll still be keeping busy, citing the importance of binding new laws for digital assets rather than an enforcement strategy that varies depending on who’s in the White House.
“There’s some people who think, ‘Well, now you have a Trump administration that’s pro-crypto. You’ve got David Sacks as the crypto czar. You don’t really need legislation.’ That is wrong,” Sinema said in an interview. “Then you’re still in a scenario where consumers such as yourself can’t feel confident without a lot of outside education or assistance.”
Neither Sinema nor LaCivita will be lobbying, but both will utilize their knowledge of the Hill and Trump’s network to help the industry navigate this Congress and beyond. After spending sizable amounts to boost pro-crypto candidates in the 2024 elections, the new hires show the digital asset industry isn’t done building its influence.
The two new crypto advisers bring different strengths: Sinema was a consummate dealmaker in the Senate, helping negotiate cross-aisle agreements on infrastructure and gun safety, while LaCivita remains close to Trump and his key advisers.
LaCivita said Trump has “heard a lot about [crypto] from Barron,” the president’s youngest son.
“The boss was very much into learning about as much of this as possible,” LaCivita said in an interview. “The president’s made it perfectly clear he wants to be on the forefront.”
Former Federal Reserve Bank of New York President Bill Dudley and Former Inter-American Development Bank president Luis Alberto Moreno are joining Sinema and LaCivita as new Coinbase advisers. The company’s team already includes former Sen. Pat Toomey, R-Pa., former Rep. Stephanie Murphy, D-Fla., and several other former officials from both parties.
Know More
Sinema’s a seasoned crypto advocate, working both on legislation and to combat the perception that only Republicans support the still-fledgling digital asset industry. Sinema said she owns some crypto already.
“It’s a smart investment,” Sinema said.
The House passed bipartisan legislation to set up crypto regulatory rules last year, but it stalled in the Senate. Sinema said she’d like to see a renewed effort on the Hill to pass a bill firming up standards for the industry but that it will have to reflect the new makeup of Congress.
“We need legislation so that consumers can feel confident that when they purchase or trade crypto, that they’re doing so in a marketplace that is fair and that is regulated and that has oversight,” she said.
LaCivita said he doesn’t own crypto at the moment but “of course” he will soon. The longtime GOP operative agreed on the need for legislative and regulatory safeguards but also warned against making things too complex, saying any framework should be “straightforward and understandable.”
“Consumers and investors just want clear rules,” he said.
The crypto industry spent millions of dollars in House and Senate races seeking to boost favorable candidates and sink skeptics. Former Senate Banking Committee Chair Sherrod Brown, D-Ohio, faced an acute barrage of ads boosting his opponent, now-Sen. Bernie Moreno, R-Ohio.
But there are also a handful of increasingly vocal pro-crypto Democrats, and former Vice President Kamala Harris made inroads with the industry during her losing campaign against Trump. Which is why both Sinema and LaCivita argue that digital asset companies don’t get partisan.
Sinema noted that the House and Senate leaders in both parties are “pro-crypto,” setting the stage for a potential deal this Congress.
“I think you’re going to see a real different conversation around crypto this year,” Sinema said.
Notable
- Harris tapped two senior advisers to reach out to the crypto industry during her run, Semafor reported at the time.
- Trump’s launch of his own crypto coin is sparking concerns about a new path for his personal enrichment while in office, as NPR explored.