by Coinstrooper Crypto Articles
Quick Take
  • The senator’s comments followed reports that Coinbase contributed to both Trump’s inauguration and the construction of a new White House ballroom.
  • In a post on X earlier this week, Murphy claimed that the crypto exchange’s donations were part of a broader pattern of political favor-trading.
  • “Here’s an example of how Trump’s corruption factory works,” he wrote.
  • “Fairshake is a non-partisan super PAC,” Shirzad wrote, referring to the political action committee funded by several crypto firms, including Coinbase.

What Happened

Coinbase is pushing back against allegations from Senator Chris Murphy, who accused the cryptocurrency exchange of participating in what he described as President Donald Trump’s “corruption factory.”

The senator’s comments followed reports that Coinbase contributed to both Trump’s inauguration and the construction of a new White House ballroom.

“Here’s an example of how Trump’s corruption factory works,” he wrote.

Market Context

In a post on X earlier this week, Murphy claimed that the crypto exchange’s donations were part of a broader pattern of political favor-trading.

Why It Matters

The White House has said the ballroom, expected to cost around $300 million, is being funded privately and will not draw from taxpayer money.

Details

He cited many examples, like Coinbase putting $46M into elections to help Trump allies, sending him a huge check for his inauguration, Trump dropping the SEC lawsuit against Coinbase, and then Trump demanding a big donation from Coinbase for a ballroom.

Did Senator Murphy Get It Wrong About Coinbase’s Trump Donation?

Coinbase’s Chief Policy Officer, Faryar Shirzad, publicly rejected the accusation, calling the senator’s claims “ridiculous.” Responding directly on X, Shirzad said Murphy’s statement “ignored basic facts” and outlined Coinbase’s version of events.

“Fairshake is a non-partisan super PAC,” Shirzad wrote, referring to the political action committee funded by several crypto firms, including Coinbase.

“Ask your staff to look up the public disclosures, and you’ll see that Fairshake supported multiple Democrats, including three of your new Senate colleagues.”

He added that the PAC’s funding followed all campaign finance laws and was consistent with long-standing practice, noting that “Presidential Inaugural Committees for decades, from Obama to Biden to Trump and before, have been supported by public donations.”

According to White House disclosures, Coinbase, Kraken, and Circle each donated $1 million to Trump’s inauguration, while Robinhood contributed $2 million.

Coinbase Defends Donation as Lawmakers Demand Answers

Faryar Shirzad, Coinbase’s Chief Policy Officer, further addressed the senator’s claim regarding the White House ballroom project, saying Coinbase’s donation was part of a broad corporate effort to support a federally recognized public project.

“We’re proud to have supported the building of a new ballroom through the Trust for the National Mall, a 501(c)(3) partner of the National Park Service,” he wrote.

“Corporations from all industries donated as well. Note that we’re not the general contractor, so we’re not the right target if you’re unhappy about how the project is proceeding.”

According to the official donor list, Coinbase contributed to the effort alongside other major companies such as Apple, Amazon, Google, Microsoft, and Meta, as well as crypto firms including Ripple, Kraken, Circle, and Tether.

Notably, on October 30, lawmakers led by Senator Adam Schiff demanded a full accounting of all contributions, citing potential conflicts of interest.

Senate Democrats Probe Trump’s Crypto Connections After Coinbase Case Closure

Shirzad also addressed Murphy’s claim that Coinbase’s donations were linked to the Securities and Exchange Commission’s decision to drop its enforcement action against the exchange.

The SEC sued Coinbase in 2023 for operating as an unregistered securities exchange and for issues related to its staking program.

The case was dropped in February 2025 under the new SEC leadership, a move widely seen as showing a shift in Washington’s approach to crypto regulation.

“The SEC lawsuits against Coinbase and dozens of other companies were part of a grotesque pattern of bullying and abuse of power by the previous chair,” Shirzad said, adding that the current SEC’s decision “was the right decision on the merits.”

The regulator has also dropped or paused its cases against other firms like Ripple Labs, Kraken, Gemini, Consensys, Robinhood, and Yuga Labs.