CfA Calls on IRS to Investigate Conservative Partnership Institute

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** CfA's February 23, 2024 Newsletter
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With your support, Campaign for Accountability is working to expose corruption and hold the powerful accountable.


** This Week's Updates:
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CfA Calls on IRS to Investigate Conservative Partnership Institute
This week, CfA filed an IRS complaint regarding the Conservative Partnership Institute (CPI), which appear to be engaging in activities that violate its nonprofit status. Robert Draper, who covered ([link removed]) CfA’s complaint for The New York Times, described CPI as a “full-service nerve center for right-wing activity” with an annual budget of $36 million; its senior executives ([link removed]) include retired Republican senator Jim DeMint and President Donald Trump’s former chief of staff, Mark Meadows. CPI operates multiple subsidiaries, including a for-profit entity known as the Compass Legal Group (CLG). Since October 2021, CLG has collected nearly $700,000 from federal campaigns and political committees, including over $250,000 from Trump’s 2024 campaign. These services do not appear to be provided on a neutral basis, and appear to have only been used by Republican candidates or
organizations. Now, CfA is asking the IRS to investigate this arrangement, which could constitute impermissible political activity by a tax-exempt organization.
American Crypto Company Pulls Currency from Off-Shore Exchange Following CfA Report
In November of 2023, CfA urged ([link removed]) Sens. Elizabeth Warren (D-MA) and Sherrod Brown (D-OH) to examine the role that the U.S.-based crypto company Circle could be playing in terrorist financing by allowing its USDC currency to be issued on an offshore blockchain known as TRON, which had already been linked to asset seizures. Circle initially disputed ([link removed]) CfA’s findings, and attempted to minimize its relationship with TRON. Then, on Tuesday of this week, Circle announced ([link removed]) that it would be pulling its support for USDC on TRON, which it described as a step to ensure that the currency “remained trusted, transparent, and safe.” While this is a good voluntary
measure, there’s still no law to stop US-based crypto companies from helping bad actors by circulating their currencies on unregulated exchanges.
Crypto Lobbying Group Pushes “Blockchain Basics Act”
Last year, an advocacy group called the Satoshi Action Fund secured a big win for the cryptocurrency industry by passing “Right to Mine” laws in Arkansas ([link removed]) and Montana ([link removed]) , which prevent state and local governments from “discriminating” against crypto. The legislation protects cryptocurrency and associated industries from additional taxation or other types of regulation, including specific zoning ordinances for noisy mining facilities. In practice, the laws have frustrated some residents, who say the constant hum of cooling fans ([link removed]) is negatively impacting property values, wildlife, and public health.

Now, the Satoshi Fund is pushing a more ambitious piece of legislation, which it calls the Blockchain Basics Act ([link removed]) . As of yesterday, Satoshi CEO Dennis Porter claimed ([link removed]) the bill had been introduced in ten states. In addition to all the protections contained in the Right to Mine laws, the Blockchain Basics Act includes language that would prevent cryptocurrency mining operations from being classified as securities by states. The legislation has already been introduced in Georgia, where a senior official from the Secretary of State’s office pointed out that her agency needed to be able to treat cryptocurrency mines as securities in order to prosecute fraud. “Passing this law as it is drafted would shut down our ability to do these investigations and leave defrauded Georgian investors with less protections and deplete their life savings,” she said.

TTP published a report ([link removed]) on the crypto industry’s state lobbying efforts in April of 2022, which involved packing obscure state advisory boards with advocates who could push favorable regulations. Crypto lobbying spending has only increased ([link removed]) since then, as the industry fights federal oversight and pushes for favorable outcomes at the state level.
What We're Reading
FTC fines cybersecurity company Avast $16.5 million for tracking and selling user data ([link removed])
Texas crypto company sues SEC for 'overreach' on digital assets ([link removed])
Alabama’s frozen embryo ruling is having its first effects. Here’s what to know ([link removed])


** Follow Our Work:
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We thank you for your continued support. Without people like you, our work would not be possible.

Here is how you can stay involved and help us accomplish our mission:
1. Follow CfA on Threads ([link removed]) and BlueSky ([link removed])
2. Follow the Tech Transparency Project on Threads ([link removed]) and Bluesky ([link removed])
3. Tell your friends and colleagues ([link removed]) about CfA.
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5. Make a tax-deductible donation ([link removed]) .

Be on the lookout for more updates about our work in the upcoming weeks. Thanks again for signing up to be a part of CfA!

Sincerely,

Michelle Kuppersmith
Executive Director, Campaign for Accountability

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