Coinbase, Kraken, a16z Launch New “American Innovation Project” to “Educate” Washington

The crypto industry just got a new, powerful voice in Washington, D.C. A called the American Innovation Project (AIP) launched on Tuesday, backed by some of the biggest names in the space. But this isn’t just another lobbying group; its unique, tax-exempt structure is a strategic play to influence policy.

AIP is being established as a 501(c)(3) organization. Under the U.S. tax code, this means it must operate solely for “educational purposes” and is barred from most political and lobbying activities.

By adopting this status, AIP positions itself as a neutral educator. This structure allows lawmakers to attend its events with fewer restrictions, while also enabling donors to receive tax advantages for their contributions.

Unlike groups formed for advocacy, AIP is planning initiatives centered on policy roundtables, summits, workshops, and training sessions. Its opening event, scheduled for August 21 in Jackson Hole, Wyoming, will coincide with the Wyoming Blockchain Symposium. According to the organization, the aim is to provide forums where regulators and lawmakers can engage with industry participants on technological and policy developments.

The initiative has attracted financial support from well-known industry players. Backing came from Digital Currency Group, Cedar Innovation Foundation, Coinbase, Kraken, Andreessen Horowitz, Paradigm, Uniswap Labs, the Solana Policy Institute, Stand With Crypto, and the National Cryptocurrency Association. Cedar Innovation Foundation operates as a dark-money group, meaning the identities of its funders remain undisclosed.

AIP’s board is chaired by Kristin Smith, who recently stepped down as the head of the Blockchain Association and now serves as president of the Solana Policy Institute. Other board members represent Digital Currency Group, Paradigm, and Coinbase.

The new group joins a policy arena already populated by the Digital Chamber, Blockchain Association, Crypto Council for Innovation, DeFi Education Fund, Solana Policy Institute, and the National Cryptocurrency Association, which has strong support from Ripple.