Key Takeaways
What did Senator Chris Murphy accuse Coinbase of?
Murphy claimed Coinbase received political favors under President Trump in exchange for financial support and donations.
Did Coinbase help fund the National Mall ballroom?
Yes, but Coinbase says the donation went through a nonprofit, alongside many other companies, and it had no role in construction.
Tensions between Washington and the crypto industry intensified this week as Coinbase responded to fresh accusations from U.S. Senator Chris Murphy.
In a post on X, Sen. Murphy alleged that Coinbase received regulatory favors in return for political support during President Donald Trump’s administration.
He further claimed that the exchange backed pro-Donald Trump allies, contributed to Trump’s inauguration, and benefited from the SEC dropping its lawsuit—suggesting a pattern of political favoritism.
Coinbase CLO and others slam the Senator’s comments
Coinbase’s Chief Legal Officer, Paul Grewal, dismissed the claims publicly, arguing that the real misconduct came from years of regulatory hostility, inconsistent SEC actions, and what federal courts have described as arbitrary treatment of the crypto sector.
Grewal added,
“Respectfully sir, do your homework.”
Echoing similar sentiments, Coinbase Chief Policy Officer Faryar Shirzad also rejected the claims, saying,
“Senator @chrismurphyCT. This is ridiculous.”
Coinbase’s defense continued, with Shirzad issuing a point-by-point rebuttal.
He emphasized that Fairshake, the PAC at the center of the debate, is non-partisan and has backed candidates from both political parties, including newly elected Democrats.
What points did Shirzad make in Coinbase’s favor?
Shirzad emphasized that corporate donations to presidential inaugural committees are a long-standing tradition, spanning administrations from Obama to Trump to Biden. He argued that portraying Coinbase’s contribution as political favoritism ignores this established precedent.
Addressing criticism over Coinbase’s involvement in funding a new National Mall ballroom, Shirzad clarified that the donation was made through a nonprofit supporting the U.S. Park Service. He added that many companies contributed, and Coinbase had no role in the construction process.
Shirzad also pointed to the SEC’s previous actions against Coinbase as evidence of regulatory overreach, citing multiple court rulings that labeled the agency’s decisions as “arbitrary and capricious.”
He suggested that the controversy reflects a deeper ideological divide over crypto’s role in the U.S. financial system. Notably, nearly 100 new digital asset initiatives have launched since the GENIUS Act, which Sen. Murphy previously opposed.
Meanwhile, Senate Democrats are continuing their investigation into the funding behind Trump’s $300 million ballroom project.
John E. Deaton joined the fray
Attorney John E. Deaton also weighed in, questioning the logic behind the SEC’s earlier approval of Coinbase’s public listing, followed by legal action that labeled parts of its business model as unlawful.
“Does that make sense to you?” he asked Sen. Murphy on X, implying that inconsistency at the regulatory level is a more pressing issue than alleged political favoritism.
Deaton said,
“You know very well Gensler, being the hack that he is, was following @ewarren’s orders to help prosecute her anti-crypto agenda.”
He further added,
“Yet, you said nothing. And the reason is because you too are a hack, who places his party before the American people. You place and politics above American innovation.”
Sen. Murphy’s similar disputes
Well, this isn’t the first time Sen. Murphy has escalated tensions around crypto. He recently had a similar dispute with another major crypto exchange, Binance.
In response to which, Binance tweeted,
Source: Binance.US/X
All in all, these controversy leaves WLFI and the broader crypto industry navigating a tense political landscape.
While critics frame the pardon as evidence of deepening financial influence in U.S. policymaking, supporters argue it simply corrects an excessive penalty and allows one of crypto’s most prominent figures to return.
