Crypto Politics Heat Up: Coinbase Denies Improper SEC Advantages
Crypto Politics Heat Up – Tensions between Washington and the crypto industry escalated this week as Coinbase responded to claims from U.S. Senator Chris Murphy suggesting the exchange received regulatory favors during President Trump’s administration.
In a post on X, Sen. Murphy alleged that Coinbase supported pro-Trump allies, contributed to Trump’s inauguration, and benefited from the SEC dropping its lawsuit, hinting at a pattern of political favoritism. He also questioned the exchange’s involvement in funding a new National Mall ballroom.
Coinbase Leadership Fires Back
Coinbase’s Chief Legal Officer Paul Grewal publicly dismissed the accusations, pointing to years of regulatory hostility, inconsistent SEC actions, and federal court rulings describing the agency’s treatment of crypto as arbitrary. Grewal’s pointed remark: “Respectfully sir, do your homework.”
Echoing this, Chief Policy Officer Faryar Shirzad emphasized that the Fairshake PAC at the center of the debate is non-partisan, backing candidates from both parties. He clarified that corporate donations to presidential inaugural committees are long-standing traditions, spanning administrations from Obama to Trump to Biden.
Addressing criticism over the National Mall ballroom, Shirzad explained that Coinbase’s donation went through a nonprofit supporting the U.S. Park Service, alongside contributions from many other companies, and that Coinbase played no role in construction.
Legal Perspectives and Wider Industry Implications
Attorney John E. Deaton criticized the SEC’s inconsistent treatment of Coinbase, questioning why the agency approved Coinbase’s public listing while later labeling parts of its business model unlawful. Deaton argued that regulatory inconsistency, rather than alleged political favoritism, poses a greater threat to U.S. crypto innovation.
This isn’t Sen. Murphy’s first clash with the crypto sector; he previously had similar disputes with Binance, highlighting a broader political tension shaping the industry’s landscape.
As debates continue over crypto’s political influence, Coinbase stands firm, defending both its contributions and its record against what it calls misleading allegations.
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