- Coinbase publicizes $25 million donation to Fairshake PAC.
- Molly White alleges that Coinbase's Fairshake PAC donation violates marketing campaign finance legal guidelines.
- Authorized Director Paul Grewal rejects the allegations as a misrepresentation of the information.
Coinbase's latest $25 million donation to Fairshake PAC has drawn criticism, with crypto researcher Molly White alleging the transfer violates pay-to-play legal guidelines for federal contractors. White argues that Coinbase, as a federal contractor, shouldn’t be concerned in political donations. Coinbase Basic Counsel Paul Grewal responded to the allegations, calling them misinformation.
In an X-rated article, Coinbase CEO Brian Armstrong introduced the corporate's $25 million contribution to Fairshake PAC, a bipartisan political motion committee supporting each Democrats and Republicans. Armstrong claimed the donation was supposed to strengthen crypto illustration in Congress and encourage a positive regulatory local weather for U.S. crypto firms. Based on Armstrong, the PAC will concentrate on making a pro-crypto panorama in Washington because the 2026 midterm elections strategy.
This donation sparked debate due to the Federal Election Marketing campaign Act (FECA), which prohibits federal contractors from making political contributions. White launched an announcement on X that Coinbase, as a federal contractor for the US Marshals Service, has now donated $50 million to political causes in violation of federal marketing campaign finance legal guidelines.
Below FECA, federal contractors are prohibited from making direct or oblique contributions to political committees, candidates, or events. Coinbase's contract with the US Marshals Service is reportedly valued at $32.5 million, with $7 million at the moment dedicated, which may convey it underneath these laws.
In response, Grewal rejected White's declare, describing it as a “misrepresentation” of the information. He additionally famous that this isn’t the primary time White has challenged Coinbase's political contributions.
White beforehand filed a criticism with FECA in August, accusing Coinbase of violating marketing campaign finance legal guidelines with an analogous donation. Grewal fired again, saying repeating false claims, particularly after earlier warnings, was “reckless.”
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