Coinbase is pushing back against allegations from Senator Chris Murphy, who accused the cryptocurrency exchange of participating in what he described as President Donald Trump’s “corruption factory.”
The senator’s comments followed reports that Coinbase contributed to both Trump’s inauguration and the construction of a new White House ballroom.
In a post on X earlier this week, Murphy claimed that the crypto exchange’s donations were part of a broader pattern of political favor-trading.
“Here’s an example of how Trump’s corruption factory works,” he wrote.
He cited many examples, like Coinbase putting $46M into elections to help Trump allies, sending him a huge check for his inauguration, Trump dropping the SEC lawsuit against Coinbase, and then Trump demanding a big donation from Coinbase for a ballroom.
Did Senator Murphy Get It Wrong About Coinbase’s Trump Donation?
Coinbase’s Chief Policy Officer, Faryar Shirzad, publicly rejected the accusation, calling the senator’s claims “ridiculous.” Responding directly on X, Shirzad said Murphy’s statement “ignored basic facts” and outlined Coinbase’s version of events.
“Fairshake is a non-partisan super PAC,” Shirzad wrote, referring to the political action committee funded by several crypto firms, including Coinbase.
“Ask your staff to look up the public disclosures, and you’ll see that Fairshake supported multiple Democrats, including three of your new Senate colleagues.”
He added that the PAC’s funding followed all campaign finance laws and was consistent with long-standing practice, noting that “Presidential Inaugural Committees for decades, from Obama to Biden to Trump and before, have been supported by public donations.”
According to White House disclosures, Coinbase, Kraken, and Circle each donated $1 million to Trump’s inauguration, while Robinhood contributed $2 million.
Coinbase Defends Donation as Lawmakers Demand Answers
Faryar Shirzad, Coinbase’s Chief Policy Officer, further addressed the senator’s claim regarding the White House ballroom project, saying Coinbase’s donation was part of a broad corporate effort to support a federally recognized public project.
“We’re proud to have supported the building of a new ballroom through the Trust for the National Mall, a 501(c)(3) partner of the National Park Service,” he wrote.
“Corporations from all industries donated as well. Note that we’re not the general contractor, so we’re not the right target if you’re unhappy about how the project is proceeding.”
The White House has said the ballroom, expected to cost around $300 million, is being funded privately and will not draw from taxpayer money.
According to the official donor list, Coinbase contributed to the effort alongside other major companies such as Apple, Amazon, Google, Microsoft, and Meta, as well as crypto firms including Ripple, Kraken, Circle, and Tether.
Notably, on October 30, lawmakers led by Senator Adam Schiff demanded a full accounting of all contributions, citing potential conflicts of interest.
Senate Democrats Probe Trump’s Crypto Connections After Coinbase Case Closure
Shirzad also addressed Murphy’s claim that Coinbase’s donations were linked to the Securities and Exchange Commission’s decision to drop its enforcement action against the exchange.
The SEC sued Coinbase in 2023 for operating as an unregistered securities exchange and for issues related to its staking program.
The case was dropped in February 2025 under the new SEC leadership, a move widely seen as showing a shift in Washington’s approach to crypto regulation.
“The SEC lawsuits against Coinbase and dozens of other companies were part of a grotesque pattern of bullying and abuse of power by the previous chair,” Shirzad said, adding that the current SEC’s decision “was the right decision on the merits.”
The regulator has also dropped or paused its cases against other firms like Ripple Labs, Kraken, Gemini, Consensys, Robinhood, and Yuga Labs.
Meanwhile, Senate Democrats have intensified scrutiny of Trump’s relationship with the crypto industry, particularly after his recent pardon of former Binance CEO Changpeng “CZ” Zhao.
Lawmakers, including Elizabeth Warren and Bernie Sanders, have accused Trump of granting favors to wealthy crypto executives.
The controversy has prompted Representative Ro Khanna to propose legislation banning elected officials from owning or launching cryptocurrencies.
Binance’s U.S. affiliate has also faced allegations of political favoritism, with Murphy suggesting the company’s recent listing of the USD1 stablecoin was linked to Zhao’s pardon. Binance.US denied the claim, saying the listing was approved as part of its “ordinary course of business.”
Coinbase’s response also came amid renewed attention to the company’s political influence.
During the 2024 election cycle, Coinbase and other crypto firms contributed over $45 million to the Fairshake PAC, which spent more than $40 million to support pro-crypto candidates in both parties.
The Center for Political Accountability reported in March that the crypto industry spent more than $134 million on the 2024 elections, a sharp increase from previous cycles.
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