The company led by CZ would be making preparations for future elections.
FTX was one of the largest donors to pro-crypto politicians.
Binance could raise and donate money to candidates, as FTX did with its Political Action Committees.
As a pair of senators call on the US Department of Justice (DOJ) to open a criminal investigation into what they call FTX’s “fraudulent tactics”, the US arm of the Binance exchange is creating its own Political Action Committee (PAC).
PACs have existed in the United States since 1944 for the purpose of raising and donating money as part of a strategy to elect and defeat candidates.
However, today the public eye has been on the political committees of FTX. They became one of the largest donors to this year’s congressional elections, according to data from the Center for Responsive Politics campaign tracker.
Now that FTX is under investigation after its bankruptcy filing less than fifteen days ago, Binance decided to send a document to the United States Federal Election Commission. He intends to create his own political action committee, which he will call the “Binance.US Innovation PAC,” according to a note published by CoinDesk.
Binance has not officially disclosed its plans to create its own PAC, but the plans declared to the US election commission make it clear that the company may be adjusting preparations for the upcoming elections.
Binance would be making preparations to fill the void left by FTX
Binance may want to copy the model applied by Sam Bankman Fried, the former CEO of FTX, who took special care to support candidates and future legislators with proposed laws, introduced in Congress, to regulate cryptocurrencies.
For example, he made donations to Debbie Stabenow and John Boozman, who introduced the Digital Commodity Consumer Protection Act in August of this year.
Similarly, FTX’s Bankman Fried donated money to Kirsten Gillibrand, who in June presented a regulatory proposal for bitcoin and other cryptocurrencies together with Cynthia Lummis, as reported by CriptoNoticias at the time.
Tom Emmer was another candidate who received donations from the FTX fund. He has become one of the industry’s fiercest political advocates, reaffirming this in October when he said that “elected and appointed officials can support the growth of an American crypto sector in its own right or see it advance in other parts of the world.” ».
As we mentioned at the beginning of this note, Binance’s intention to create its own PAC arises at the precise moment in which the FTX case shakes the cryptocurrency industry. And just as Senators Elizabeth Warren and Sheldon Whitehouse sent a letter to the DOJ calling for a criminal investigation of the failing cryptocurrency exchange.