Cedar is a 501(c) (4) nonprofit, a kind of organization that is tax-exempt and can make independent expenditures on politics without disclosing the names of its donors. The popularity of such nonprofits has surged over the past decade as a way for donors to influence policy without being seen doing so. Cedar has repeatedly declined to say who funds the organization. Critics call such nonprofits “dark money” groups because the source of funding is unknown.

Delaware corporate records dated March 1 said that Cedar’s board included four directors: Chase Goodwin, Declan Hahn, John Collins, and Tyler Whirty.

Whirty in 2020 founded “HODLpac,” a pro-crypto political-action committee whose early donors included Coinbase CEO Brian Armstrong, Gemini co-founders Cameron and Tyler Winklevoss, and Blockchain Association CEO Kristin Smith, among others. It spent about $213,000 before the 2022 election, according to Opensecrets.org—which tracks election spending—but the PAC has had little activity this election cycle.

Goodwin and Hahn’s LinkedIn and Twitter profiles describe them as political consultants with experience on Democratic campaigns. Collins until recently was a senior advisor to FS Vector, which lobbies on behalf of crypto firms. He was Coinbase’s head of policy between 2014 and 2016.

After being contacted by Barron’s, Cedar spokesman Josh Vlasto said Collins was no longer a Cedar director and had been erroneously included on the Delaware documents. He sent an amended filing that removed Collins as director. The directors declined to comment through Vlasto.

Cedar itself has spent at least $140,000 on lobbyists since last November, according to Senate lobbying disclosure records. According to the records, the lobbyists attempted to influence lawmakers working on bills that would clarify the regulatory treatment of stablecoins and that would limit the Securities and Exchange Commission’s purview over the crypto industry. These two changes have been top legislative priorities for a number of crypto firms, including Coinbase.

Cedar in the past has coordinated conversations between crypto executives and candidates for political office to tell the politicians about the industry and gauge their crypto views, according to people familiar with the matter.

“Our team and partners regularly meet with key policy stakeholders to provide expert analysis and guidance on crypto and blockchain policy and regulatory developments,” said Cedar engagement director Colin McLaren, in a statement through Vlasto, adding “Congress must act to maintain America’s place as the leading home of innovation.”

CNBC in January reported that Coinbase was likely to provide funding to Cedar this year, citing people familiar with the matter. Coinbase declined to comment to CNBC and didn’t respond to a request for comment from Barron’s.

Cedar doesn’t disclose its donors or how much money it has raised. But in December, Cedar said it had made a “six figure” digital ad buy in Ohio, which it described as the first in a “multimillion-dollar effort to fight misinformation and politically motivated attacks on
Americans’ right to participate in the crypto and blockchain ecosystem.”

Since January, it has run ads on

Facebook

pressuring Ohio Democratic Sen. Sherrod Brown to “stand up” to SEC Chair Gary Gensler, who the ad says is “shipping good paying American jobs overseas and outsourcing critical American technology to China.” The ads typically don’t mention crypto.

Another ad that does mention crypto targets Kansas Republican Sen. Roger Marshall, who is among the co-sponsors of an industry-opposed bill with Sen. Elizabeth Warren (D., Mass.) that seeks to crack down on crypto’s use in tax evasion and illicit finance. “Warren and Marshall are teaming up to ship good paying American jobs and critical technology overseas,” says the ad.

A Brown spokesperson declined to comment. Spokespeople for Marshall and Warren didn’t respond to requests for comment.

Cedar is one of several political crypto affiliated organizations that plan to spend tens of millions of dollars influencing the 2024 election. The Fairshake PAC has raised $169 million from executives at companies including Coinbase, Ripple Labs and Andreessen Horowitz, according to Vlasto, who is also the spokesman for Fairshake. The amount of money raised make it one of the most well-funded PACs this election cycle. During the primary cycle, Fairshake spent millions of dollars support pro-crypto candidates and attacking candidates perceived as opponents.

“We will continue to support candidates who committed to getting things done and working with the industry to pass responsible regulation that drives innovation, creates jobs, and sustains America’s global leadership,” Vlasto said on behalf of Fairshake. “We will have the resources to affect races in 2024 and beyond.”

Crypto executives are fighting to pass legislation that would take most crypto transactions out of the remit of the SEC, which the industry generally views as a tougher regulator than the Commodity Futures Trading Commission.

The industry has had some recent victories, with a Coinbase-supported bill in the House of Representatives receiving 71 votes from Democrats, far more than expected. Former President Donald Trump, while skeptical of Bitcoin while in office, has also come out strong in favor of crypto as he seeks to raise campaign cash.

No matter how the 2024 election goes, the crypto industry’s power to influence politics continues to grow.

Write to Joe Light at joe.light@barrons.com