- Coinbase Broadcasts $25 Million Donation to Fairshake PAC
- Molly White claims Coinbase's donation to Fairshake PAC violates marketing campaign finance legal guidelines.
- Normal counsel Paul Grewal dismisses the allegations as a misrepresentation of the details.
Coinbase's current $25 million donation to Fairshake PAC has drawn criticism, with crypto researcher Molly White claiming 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 Normal Counsel Paul Grewal responded to the claims, dismissing them as misinformation.
In an X submit, 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 confirmed that the purpose of the donation is to strengthen crypto illustration in Congress and promote a good regulatory local weather for US crypto companies. In line with Armstrong, the PAC will deal with shaping a pro-crypto panorama in Washington with the upcoming 2026 election.
The donation sparked debate over the Federal Election Marketing campaign Act (FECA), which restricts federal contractors from making political contributions. White posted an announcement on X that Coinbase, as a federal contractor with 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 america Marshals Service is reportedly valued at $32.5 million, with $7 million presently owed, which may topic it to those rules.
In response, Grewal dismissed White's declare, describing it as a “distortion” of the details. He additionally famous that this isn't the primary time White has questioned Coinbase's political contributions.
White beforehand filed a FECA criticism in August, accusing Coinbase of violating marketing campaign finance legal guidelines with an analogous donation. Grewal stepped down, saying repeating false claims, particularly after earlier warnings, was “unwise”.
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