Background on Allegations
Cryptocurrency exchanges are increasingly under the microscope for their political donations, drawing closer public and governmental scrutiny. As a result, platforms like Coinbase have faced questions about their role in political initiatives. On October 30, Faryar Shirzad, chief policy officer at Coinbase, directly addressed allegations from a U.S. senator linking the company to the Trump administration.
U.S. Senator Chris Murphy, through a post on X, accused Coinbase of being part of what he called Trump’s “corruption factory,” suggesting the exchange’s contributions were intended to gain favorable treatment.
He pointed to several specific instances, which include the following:
- •Coinbase reportedly contributed $46 million to support allies of President Trump in past elections and also made donations toward the presidential inauguration.
- •The senator mentioned that the exchange seemed to gain from the SEC’s decision to drop a lawsuit that had been filed against the company under the previous leadership.
- •Finally, he raised concerns about the company being asked to contribute to a new White House ballroom, presenting it as part of a larger political fundraising effort.
Coinbase's Response and Defense
Shirzad responded to these claims by defending Coinbase’s actions and rejecting any implication of wrongdoing. He noted that the company had contributed to the White House ballroom project through the Trust for the National Mall and stressed that it was not managing the project, making it not responsible for its execution. The exchange, he said, is “proud to have supported the building of a new ballroom.”
The ballroom initiative has drawn contributions from several major corporations, including Apple, Amazon, Meta, Microsoft, Google, and Comcast. Initially projected to cost $200 million, the 90,000-square-foot project has since increased to $300 million. The construction also involves the demolition of the East Wing, making it a highly visible and expensive undertaking.
SEC Lawsuit and Political Action Committee Involvement
Shirzad also addressed the SEC lawsuit against Coinbase, explaining that several cases against the company and other firms had been dismissed because the previous chair’s actions were widely regarded as unfair and an abuse of authority. He emphasized that the current SEC’s decision to drop the case was appropriate and consistent with proper enforcement standards.
Beyond Coinbase, the regulator has also put on hold or discontinued enforcement actions targeting other prominent cryptocurrency firms, including Ripple Labs, Kraken, Gemini, and Robinhood, reflecting a broader shift in approach under the new administration.
Meanwhile, seven Senate Democrats have raised concerns over Trump’s recent pardon of former Binance CEO Changpeng “CZ” Zhao, amid broader questions about his financial ties to cryptocurrency executives.
On the topic of political contributions, Shirzad clarified that Fairshake, a super PAC funded by multiple crypto companies including Coinbase, is non-partisan. He added that “Presidential Inaugural Committees for decades – from Obama to Biden to Trump and before – have been supported by public donations.”
Coinbase's Past Involvement in Trump-Linked Initiatives
This is not the first time Coinbase’s financial involvement with Trump-related initiatives has attracted scrutiny. The exchange was a notable sponsor of the U.S. Army’s 250th anniversary celebration, which took place in June and included a military parade held on Trump’s birthday.
Further attention came when a Coinbase representative attended a White House fundraising dinner for the ballroom project, alongside other notable figures from the cryptocurrency sector, including Gemini co-founders Cameron and Tyler Winklevoss and a delegate from Ripple Labs. Events like this reflect the wider debate over how cryptocurrency companies interact with government-led projects. While such contributions may be common practice, they remain under close watch, especially in a fast-growing and closely scrutinized sector like crypto.