- Coinbase announces a donation of $25 million to Fairshake PAC.
- Molly White alleges that Coinbase’s Fairshake PAC donation violates the campaign finance laws.
- Chief Legal Officer Paul Grewal dismisses the allegations as a misrepresentation of facts.
Coinbase’s recent $25 million donation to Fairshake PAC has drawn criticism, with crypto researcher Molly White alleging the move violates pay-to-play laws for federal contractors. White contends that Coinbase, as a federal contractor, should not be involved in political donations. Coinbase’s Chief Legal Officer Paul Grewal responded to the claims, dismissing them as misinformation.
In an X post, Coinbase CEO Brian Armstrong announced the company’s $25 million contribution to Fairshake PAC, a bipartisan political action committee supporting both Democrats and Republicans. Armstrong affirmed that the donation aims to strengthen crypto representation in Congress and encourage a favorable regulatory climate for U.S. crypto businesses. According to Armstrong, the PAC’s focus will be on shaping a pro-crypto landscape in Washington as the 2026 midterm elections approach.
The donation has sparked debate due to the Federal Election Campaign Act (FECA), which restricts federal contractors from making political contributions. White put out a statement on X that Coinbase, as a federal contractor with the U.S. Marshals Service has now donated $50 million to political causes in violation of federal campaign finance laws.
Under FECA, federal contractors are prohibited from making direct or indirect contributions to political committees, candidates, or parties. Reportedly, Coinbase’s contract with the United States Marshals Service is valued at $32.5 million, with $7 million currently obligated, which could place it under these regulations.
In response, Grewal dismissed White’s assertion, describing it as a “misrepresentation” of the facts. He also noted that this isn’t the first time White has challenged Coinbase’s political contributions.
White previously filed a FECA complaint in August, accusing Coinbase of breaking campaign finance laws with a similar donation. Grewal pushed back, stating that repeating false claims, especially after previous warnings, is “unwise.”
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Source: https://coinedition.com/coinbase-faces-scrutiny-over-25m-donation-to-fairshake-pac/