Crypto wins regardless of Clarity Act vote, Coinbase's Armstrong says

Billionaire Coinbase CEO Brian Armstrong has stated that most charities are "net negative" and that he has no plans to establish his own foundation, according to a recent interview. Armstrong, worth nearly $10 billion, contends that many philanthropic organizations are captured by ideology and often result in unintended consequences.

He cited a hypothetical nonprofit focused on criminal justice reform that, in his view, "just increased crime." Armstrong's primary concern about setting up a foundation is losing control to ideology. He drew a parallel to Henry Ford, whose Ford Foundation has awarded $4 billion in grants, but Armstrong believes Ford might be "turning over in his grave" with its current activities.

Armstrong does, however, maintain a donor-advised fund (DAF) where he allocates funds toward causes he believes advance civilization. While he did not disclose specific causes, DAFs allow individuals to set aside money for charity, receive an immediate tax deduction, and decide on the allocation later. Other billionaires, such as MacKenzie Scott and Melinda French Gates, have been more active in philanthropy, with Scott alone giving away more than $26 billion.

However, some wealthy individuals like Musk and Thiel have expressed skepticism about the effectiveness and value of giving. Thiel has discouraged fellow signatories of The Giving Pledge from remaining committed, stating he has nudged them to withdraw or unsign. The debate over slow philanthropy highlights the concerns that many billionaires retain wealth in foundations and DAFs, which offer immediate tax benefits but do not require immediate distribution to working charities.

Despite these concerns, philanthropic giving continues, with Armstrong's peers still supporting structured philanthropy.