Former Los Angeles Mayor Antonio Villaraigosa doesn’t own any cryptocurrencies – at least not yet. But it is poised to become a player in the industry’s fight for friendlier cryptocurrency rules.
Trading platform Coinbase announced Tuesday that Villaraigosa, a Democrat who served as mayor of Los Angeles from 2005 to 2013, held a paid position on its global advisory board.
In an interview with The Times, Villaraigosa said he would not lobby on behalf of Coinbase but was advising the company to ensure a “robust and fair regulatory framework” for U.S. customers.
Villaraigosa will focus on how to make financial systems more equitable for Black and Latino customers, Coinbase said. The company estimates that about 41% of U.S. crypto investors are Black or Latino.
“Crypto users participate in our democracy just like anyone else,” Villaraigosa said. “They need regulatory protection.”
Villaraigosa’s hiring is part of a broader publicity and lobbying effort by Coinbase following years of conflict between the industry and federal regulators, including the Securities and Exchange Commission.
Criminal investigations recently led to the arrest of two of the crypto industry’s most well-known figures: former FTX CEO Sam Bankman-Fried, who was sentenced to 25 years in prison in March, and former Binance CEO Changpeng “CZ” Zhao, who was sentenced to 25 years in prison in March. is scheduled to be sentenced Tuesday after pleading guilty last year to a money laundering charge.
Coinbase and other companies have said the United States should be friendlier to the industry and that clearer rules are needed to help American crypto companies compete with exchanges in countries with less strict rules.
regulations.
The industry has spent heavily during the 2024 election cycle, signaling a desire to promote candidates who support crypto priorities in Washington and oust those who do not.
The political advisory board Villaraigosa is joining includes former Rep. Tim Ryan of Ohio, a Democrat, and former Pennsylvania Sen. Pat Toomey, a Republican, as well as political veterans such as campaign pollster John Anzalone Hillary Clinton’s 2016 campaign and President Biden’s 2020 campaign.
Villaraigosa brings a “sense of body politic” to the group, said Faryar Shirzad, Coinbase’s chief policy officer.
He “understands the broader public attitude, public opinion, public sentiment, in a way that has been very helpful,” Shirzad added.
Villaraigosa said he would contribute to Coinbase’s efforts to create a “level playing field,” including for stablecoin, a form of cryptocurrency that is ostensibly pegged to the value of the U.S. dollar.
Villaraigosa said crypto is a promising alternative for Black and Latino investors who have faced racial discrimination at traditional banks. He added that crypto platforms could also serve as an alternative for people sending money to family members in other countries, known as remittances.
Americans sent more than $81 billion abroad in 2022, according to the World Bank. The average fee for a $200 remittance worldwide was 6.18% in the third quarter of last year, the organization said.
The cost of sending money to family members through crypto platforms such as Coinbase is “de minimis,” or minor, in comparison, Villaraigosa said.
Since leaving Los Angeles City Hall in 2013, Villaraigosa has taught at the USC Sol Price School of Public Policy and worked as an associate at the consulting firm Actum. He launched a campaign for governor in 2018, finishing third in the primary behind Gov. Gavin Newsom and Republican John Cox.
In 2022, Newsom tapped Villaraigosa to become a top adviser on infrastructure issues, tasked with helping identify projects that could benefit from federal funding from Biden’s infrastructure law.
Villaraigosa also worked as an advisor to the Banc of California, multi-level marketing company Herbalife and health clinic chain AltaMed.
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