Coinbase, a prominent global cryptocurrency exchange, has publicly refuted allegations made by U.S. Senator Chris Murphy. The senator had accused the exchange of benefiting from political favoritism during the administration of U.S. President Donald Trump.
Faryar Shirzad, Coinbase's Chief Policy Officer (CPO), addressed these claims directly via an X post, describing the senator's accusations as "ridiculous."
Senator @ChrisMurphyCT. This is ridiculous. Here are the facts:
— Faryar Shirzad 🛡️ (@faryarshirzad) October 30, 2025
– Fairshake is non-partisan superpac. Ask your staff to look up the public disclosures and you'll see that FS supported multiple Democrats, including 3 of your new Senate D colleagues.
– Presidential Inaugural… https://t.co/0PGEz3zQtJ
Senator Murphy had asserted on Thursday that Coinbase's political donations influenced the Securities and Exchange Commission's (SEC) decision to dismiss its lawsuit against the company earlier this year. He cited Coinbase's $46 million in political spending, contributions to President Trump's inauguration, and a recent donation for a new White House ballroom as evidence of what he termed "Trump’s corruption factory."
Here's an example of how Trump's corruption factory works.
— Chris Murphy 🟧 (@ChrisMurphyCT) October 30, 2025
1. Coinbase put $46M into elections to help Trump allies.
2. Sends him a huge check for his inauguration.
3. Trump drops SEC lawsuit against Coinbase.
4. Trump demands big donation from Coinbase for ballroom. Done. https://t.co/kLstTHquty
Coinbase's Defense
Shirzad defended Coinbase's actions, explaining that its political donations were channeled through "Fairshake," a political action committee that operates on a nonpartisan basis and has supported candidates from both the Democratic and Republican parties. He further clarified that inaugural donations are a common practice for corporations, and the contribution for the White House ballroom was part of a collaborative initiative with the Trust for the National Mall, involving other major companies.
Addressing the SEC case, Shirzad characterized the prior lawsuit against Coinbase and numerous other firms as a reflection of "a grotesque pattern of bullying and abuse of power by the previous chair." He commended the current SEC's decision to dismiss the case, deeming it "the right decision on the merits."
Shirzad also highlighted Coinbase's dedication to fostering innovation. He pointed to the launch of nearly 100 new stablecoin projects since the passage of the GENIUS Act, a bill that Coinbase had publicly endorsed.
Broader Political Implications
Senator Murphy's critique of Coinbase follows a recent exchange he had with Binance.US, where he alleged that the exchange listed USD1, a stablecoin linked to Trump, as a form of political favor. Binance.US denied these allegations, stating that the listing was planned long before President Trump's recent pardon of Binance Co-Founder Changpeng Zhao (CZ).
In light of these developments, U.S. Representative Ro Khanna (D-CA) announced his intention to introduce a resolution that would prohibit the U.S. President, their family members, and members of Congress from trading cryptocurrencies or stocks. Khanna stated that this measure aims to restore public trust and prevent conflicts of interest in Washington.
These consecutive controversies underscore the escalating political tensions surrounding the role of cryptocurrency in U.S. policymaking and campaign finance.
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