Coinbase’s chief legal officer, Paul Grewal, has claimed that claims of the exchange breaking campaign finance laws are false, calling it misinformation. It recently donated million to the Fairshake super political action committee (PAC) in May 2024. Grewal wrote on X about the accusation, “Whether intentional or not, this is misinformation. Coinbase is not a federal contractor under the plain language of 11 CFR 115.1. USMS isn’t paying us with appropriated funds—something it made clear in the public RFP.” This statement came as a response to claims made by crypto researcher Molly White. She claimed that “Coinbase appears to have violated campaign finance laws.” She explained the accusation, “Actively involved in contract negotiations with a federal government agency, Coinbase was
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Coinbase’s chief legal officer, Paul Grewal, has claimed that claims of the exchange breaking campaign finance laws are false, calling it misinformation. It recently donated $25 million to the Fairshake super political action committee (PAC) in May 2024.
Grewal wrote on X about the accusation, “Whether intentional or not, this is misinformation. Coinbase is not a federal contractor under the plain language of 11 CFR 115.1. USMS isn’t paying us with appropriated funds—something it made clear in the public RFP.”
This statement came as a response to claims made by crypto researcher Molly White. She claimed that “Coinbase appears to have violated campaign finance laws.” She explained the accusation, “Actively involved in contract negotiations with a federal government agency, Coinbase was likely prohibited from making its $25 million contribution to the Fairshake crypto super PAC in May 2024.”
Coinbase has contributed to the Fairshake super PAC thrice. The first time was a $5 million contribution in November 2023, the second was $15.5 million in December 2023, and the last was $25 million in May 2024. About the last contribution, White said, “This $25 million contribution, however, appears to be in violation of federal campaign finance laws that prohibit contributions from current or prospective federal government contractors.” She continued, “This would be by far the largest known illegal campaign contribution by a federal contractor.”
Grewal mentioned that Coinbase is receiving funds derived from the Department of Justice (DoJ) selling property forfeited to the agency. Those funds, according to Grewal, are not appropriated. Thus, Coinbase does not qualify as a federal contractor and has not violated campaign finance laws.
The Fairshake super PAC has attracted over $202 million worth of donations this year. Many crypto firms have contributed to it, including Circle and Ripple Labs, among other massive names.