Election Day brought major gains for the crypto industry, with Coinbase CEO Brian Armstrong emerging as one the biggest winners.
Coinbase shares surged 31% on Wednesday, 6 November 2024, marking the best trading day in the company’s history. The spike followed a successful push by the crypto sector to elect pro-crypto candidates into office.
The Coinbase-backed political action committee (PAC), Fairshake, reported that 46 out of the 58 candidates it supported won their races, with results still pending in 12 contests.
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Armstrong’s Net Worth Increases By $2.1 Billion
Armstrong, who co-founded Coinbase in 2012 and took it public in 2021, holds over 10% of the company’s shares. His stake, comprising 34.8 million Class A and Class B shares, gained approximately $2.1 billion in value, bringing his net worth to nearly $9 billion.
Armstrong celebrated the victories on social media, emphasizing the political shift in favor of cryptocurrencies. “Being anti-crypto is simply bad politics,” he wrote on X (formerly Twitter), following Republican Bernie Moreno’s victory in Ohio’s Senate race over Democrat Sherrod Brown.
In a detailed post, Armstrong described the election as a “huge win for crypto,” as Bitcoin surged over 9.5%, reaching an all-time high of $76,400.
Moreno, a blockchain entrepreneur with limited initial recognition, benefited significantly from crypto industry backing.
Being anti-crypto is simply bad politics pic.twitter.com/Y6mPMSE3C0
— Brian Armstrong (@brian_armstrong) November 6, 2024
Around $40 million in crypto funding targeted the defeat of Brown, a vocal critic of cryptocurrencies and chair of the Senate Banking Committee.
The Stand With Crypto Alliance, a Coinbase initiative, gave Brown an “F” grade while awarding Moreno an “A.” Moreno’s victory helped Republicans secure a Senate majority, complementing Donald Trump’s presidential win.
Despite the industry’s involvement, Moreno avoided referencing crypto in his victory speech, focusing instead on broader political priorities like economic recovery and border security.
However, his campaign was undeniably propelled by crypto-related support, highlighting the industry’s growing influence in U.S. politics. For Armstrong, engaging in politics has become integral to navigating Coinbase’s regulatory challenges.
The Securities and Exchange Commission (SEC), led by Chair Gary Gensler, sued Coinbase last year over allegations of selling unregistered securities. Although a judge ruled that the case should proceed to a jury trial, Coinbase has continued its efforts to shape crypto legislation.
Armstrong’s visits to Washington DC, have intensified over the years, evolving from sporadic trips to frequent engagements. He has advocated for clearer rules governing cryptocurrencies and contributed over $1.3 million to political campaigns during the 2024 election cycle.
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Coinbase Donated $75M To Pro-Crypto PACs
Meanwhile, Coinbase donated over $75 million to pro-crypto PACs, including a fresh $25 million pledge for the 2026 midterms. The post-election boost in Coinbase’s stock offset a recent 15% dip after disappointing quarterly results.
Paul Grewal, Coinbase’s chief legal officer, used the election outcomes to urge the SEC to reconsider its stance on crypto. “Stop suing crypto,” he wrote on X. Armstrong echoed this sentiment, simply commenting, “True.”
I hope @SECGov understands what has happened tonight. On many, many issues, the voters said loud and clear that they want change. Crypto is no exception.
Stop suing crypto. Start talking to crypto. Initiate rulemaking now. There's no reason to wait.
— paulgrewal.eth (@iampaulgrewal) November 6, 2024
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