Crypto News- Coinbase denies allegations of infractions related to campaign finance laws

Crypto News- Coinbase rejects claims that it breached campaign finance laws

Crypto News– Paul Grewal, Coinbase’s chief legal officer, has denied allegations that the crypto exchange violated campaign finance laws by donating $25 million to a super political action committee (PAC) in May 2024.

On July 31, prominent crypto skeptic Molly White claimed that Coinbase may have breached campaign finance laws by contributing to the Fairshake crypto super PAC while negotiating a federal government contract.

Grewal responded on August 1 via X, asserting that Coinbase was not a federal contractor under the specific clause of the Code of Federal Regulations 111.51. Coinbase had previously donated $5 million to Fairshake in November 2023, $15.5 million in December 2023, and $25 million on May 30, 2024.

White argued that since Coinbase issued a request for proposal on March 4, 2024, and had a contract lasting until at least June 30, 2025, the $25 million donation fell within a prohibited period for such contributions. Government affairs lobbyist Craigh Holman told White that it is illegal for federal contractors to make campaign contributions to any federal committee, including super PACs, and suggested filing a complaint with the FEC.

However, Grewal clarified in a follow-up comment on X that all funds related to the proposal were sourced from the Assets Forfeiture Fund, which is funded by the sale of property forfeited to the US government by the Department of Justice.

According to its website, the Fairshake Super PAC’s mission is to support blockchain innovators by fostering a clearer regulatory and legal environment.

The Fairshake crypto super PAC has raised over $202 million this year and includes many of the largest firms in the crypto industry as donors, with Coinbase being a prominent contributor. It is currently the largest super PAC for the 2024 election cycle.

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