Coinbase fired back at the senator on Thursday following his assertions that the crypto exchange’s partisan contributions and other business dealings had coerced the Securities and Exchange Commission into dismissing the lawsuit against it.
Coinbase claps back at Senator Murphy over alleged Trump bias
Source Cryptopolitan
Coinbase has denied accusations made by American Senator Chris Murphy, who claimed that the company benefited from political bias under the administration of U.S. President Donald Trump.
The senator stated that the platform had donated $46 million to support the election of individuals connected to Trump, while also making substantial payments to Trump’s inaugural fund. Murphy also stated that Coinbase was guilty of engaging in the initiative to purchase a new White House ballroom, which he called part of “Trump’s corruption factory,” according to the Washington Post.
He said that since the funding source had not been disclosed, Senate Democrats had demanded a full explanation of how the alleged $300 million mega-project was being financed. Murphy’s accusations against Coinbase came amid an intensifying struggle within the Democratic Party over alleged political interference in financial policy.
In addition to its spat with Coinbase, the senator has accused another prominent crypto exchange, Binance.US, of adding the USD1 stablecoin in exchange as a favor to Trump. Meanwhile, as earlier reported by Cryptopolitan, Binance.US strongly denied the allegation, stating that its connections to USD 1 were fully valid.
Coinbase rejects claims and defends its conduct
In his response, Faryar Shirzad, Coinbase’s Chief Policy Officer, said that the accusations made by Murphy sounded ridiculous and lacked substantiation. Shirzad noted that the claim that the President Trump administration favors Coinbase was completely unfounded.
He further explained that the company’s main PAC, Fairshake, was bipartisan and had supported several Democrats, such as three of Senator Murphy’s fellow senators. Thus, it is clear that there was no reason for the accusations.
Moreover, the key person emphasized that the donations made to the White House ballroom appeared to have been sent to the Trust for the National Mall, a nonpartisan corporation with which companies from various industries work.
Before providing the conclusion, the Chief Policy Officer at Coinbase emphasized that it was not a political project, but rather a civic project. He concluded, urging the senator to understand the difference before making further accusations.
The top executive defended the lawsuit decision, arguing further in response to the SEC’s past actions. Shirzad responded to Murphy’s claim with a new one. Specifically, he said that the prior leadership of the SEC engaged in bullying and abuse of power towards crypto companies. According to the executive, the current leadership did the right thing on the merits by dropping the case.
Shirzad suggested that some lawmakers disliked it. He further claimed that it was unfortunate because his company worked to maintain the U.S. financial system’s competitiveness.
Coinbase sparks new debate on crypto’s role in politics
The clash demonstrates how cryptocurrency and politics have become intertwined. Since 2022, the cryptocurrency industry has invested a substantial amount of money in politics.
The leading donors to Fairshake super PAC have been Coinbase, Ripple, and the investment firm Andreessen Horowitz. The investment firm is known for funding candidates who appear most favorable to world-changing digital asset innovation.
After years of struggling with regulators, Coinbase now engages in American politics from an antagonistic viewpoint. The SEC’s victory in the suit filed against Coinbase allowed company executives to seek portions of straightforward, regular law regarding cryptocurrencies.
But Shirzad argued Coinbase’s interest in American politics was motivated by openness rather than partiality. He claimed that the firm’s campaigning was centered on “transparency, innovation, and fairness.” Shirzad went on to say that Senator Murphy’s political blowback was predicated on falsehoods and could not change the enterprise’s dedication to those precepts.
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