Coinbase has fired back at U.S. Senator Chris Murphy’s claims that the crypto exchange benefited from political favoritism under President Donald Trump, calling the accusations baseless and politically motivated.
Senator Alleges “Trump’s Corruption Factory”
In a post on X (formerly Twitter), Sen. Chris Murphy (D-Conn.) accused Coinbase of being part of what he described as “Trump’s corruption factory.”
Murphy alleged that Coinbase’s $46 million in election donations, its contributions to Trump’s inauguration, and a recent donation to build a new White House ballroom were all connected to political favoritism — including the SEC’s decision to drop its lawsuit against the exchange earlier this year.
The senator’s comments come amid a broader Senate Democrat probe into Trump’s $300 million White House ballroom project, with lawmakers demanding full transparency on how it is being financed, according to The Washington Post.
Coinbase Responds: “Ridiculous Claims”
Faryar Shirzad, Coinbase’s chief policy officer, quickly responded on X, rejecting the allegations as “ridiculous.”
Shirzad explained that Fairshake, the crypto industry’s leading political action committee (PAC), is nonpartisan and has supported candidates from both parties — including three of Murphy’s Democratic colleagues in the Senate.
“Corporate inaugural donations are standard practice across administrations, from Obama to Biden to Trump,” Shirzad wrote.
He also clarified that Coinbase’s contribution to the White House ballroom came through the Trust for the National Mall, a nonprofit organization that includes donors from multiple industries, not just crypto.
SEC Lawsuit and Broader Context
Addressing Murphy’s claim about the SEC lawsuit, Shirzad said the agency’s prior actions under its former chair reflected “a grotesque pattern of bullying and abuse of power.”
He praised the current SEC’s decision to dismiss the case as “the right decision on the merits.”
“It may be that you just don’t like our industry,” Shirzad added. “That’s unfortunate given that we’re working hard to ensure the U.S. financial system stays on the front edge of innovation.”
Shirzad pointed out that nearly 100 new stablecoin projects have launched since the GENIUS Act — legislation Coinbase publicly supported — passed earlier this year, calling it a sign of growing innovation in the sector.
Pattern of Tensions Between Democrats and Crypto
This isn’t the first time Sen. Murphy has clashed with the crypto industry.
Earlier this week, he accused Binance.US of listing the USD1 stablecoin as a political favor following Trump’s pardon of Binance founder Changpeng Zhao. Binance.US denied the allegation, saying the token listing had been approved “well in advance as part of our ordinary course of business.”
The exchanges’ pushback reflects a growing rift between some Democratic lawmakers and the U.S. crypto industry — even as the sector continues to gain mainstream and bipartisan support under new regulatory clarity.
Disclaimer
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