Coinbase, the United States’ largest cryptocurrency exchange, has strategically positioned itself in Ohio as it seeks to engage with the state’s voters in a unique and influential way. The company recently organized a “Stand With Crypto” event in Columbus, launched targeted advertisements encouraging voters to reach out to their legislators, evaluated Ohio lawmakers based on their support for cryptocurrency-related legislation, and enlisted the services of former Congressman Tim Ryan to advocate for crypto as a catalyst for high-paying jobs in rural Ohio.
Tim Ryan, who was the Democratic nominee for the U.S. Senate in 2022, sees significant potential in data centers that are required to record and manage every Bitcoin or Ethereum transaction. He believes that these centers could bring substantial economic benefits to communities such as Coshocton or Marietta, emphasizing that the traditional economic landscape has evolved, and new opportunities are essential for growth.
Cryptocurrencies, like Bitcoin and Ethereum, offer an alternative to traditional cash and banking systems by utilizing decentralized ledger technology called blockchains. This technology, unlike centralized authorities such as banks, relies on a network of computers to verify and record transactions. Proponents argue that cryptocurrencies provide enhanced privacy and international usability without the encumbrance of exchange rates. However, detractors point to risks, lack of transparency, and potential misuse for illegal activities.
In 2022, the collapse of a cryptocurrency called FTX resulted in substantial losses for its customers. U.S. Senator Sherrod Brown from Ohio expressed concern during a February 2023 hearing, highlighting the lack of internal risk controls and the misuse of customers’ funds.
To address these challenges, Ohio’s senior senator, Sherrod Brown, has been actively involved in crafting regulations for the cryptocurrency market and determining which government agency should oversee it. Coinbase supports the Financial Innovation and Technology for the 21st Century Act (FIT21 Act), currently under consideration in the U.S. House of Representatives. If passed, this legislation would provide clarity regarding the regulatory classification of cryptocurrencies as securities or commodities, a crucial distinction that determines the applicable regulatory body—either the Securities and Exchange Commission or the Commodities Futures Trading Commission.
Coinbase’s engagement in Ohio is noteworthy due to its alignment with U.S. Rep. Warren Davidson’s bill, aimed at preserving Americans’ privacy rights in cryptocurrency transactions, and his strong support for the FIT21 Act. Davidson emphasizes the need for regulatory clarity to harness the potential of digital assets technology in the United States.
However, in the U.S. Senate, Sherrod Brown adopts a more cautious stance, focusing on protecting Ohioans from fraudulent schemes and scams in the crypto industry. Brown has held multiple hearings on crypto regulation and its impact on consumers, driven by concerns about protecting Ohio residents and the economy.
Data indicates that approximately 1.3 million Ohio adults own digital assets, with half of them falling in the 18 to 34 age group. Coinbase’s survey also reflects Ohio’s political diversity among cryptocurrency users, with approximately 36% identifying as Democrats, 43% as Republicans, and 21% as unaffiliated. According to Coinbase, the crypto voting bloc in Ohio and across the nation is broad, active, and steadily growing, with an overwhelming majority believing that changes are needed in the global financial and economic systems.
Kara Calvert, Coinbase’s head of U.S. policy, underscored the importance of Ohio’s role in shaping the future of cryptocurrency regulation. She noted that there is an evident interest in advancing the crypto industry and expressed hope for legislative progress in the Senate, emphasizing that “all roads lead through Ohio.”
