- Coinbase declares $25 million donation to Fairshake PAC.
- Molly White claims Coinbase's FairShake PAC donations violate marketing campaign finance legal guidelines.
- Chief Authorized Officer Paul Grewal dismissed the allegations as factual errors.
Coinbase's latest $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. I’m doing it. White argues that Coinbase, as a federal contractor, shouldn’t be concerned in political contributions. Coinbase Chief Authorized Officer Paul Grewal responded to the declare, dismissing it as misinformation.
In a submit on X, Coinbase CEO Brian Armstrong introduced the corporate's $25 million donation to FairShake PAC, a nonpartisan political motion committee that helps each Democrats and Republicans. Armstrong asserted that the donation is aimed toward strengthening crypto illustration in Congress and selling a positive regulatory surroundings for crypto companies in america. Armstrong stated the PAC will deal with shaping the pro-crypto panorama in Washington because the 2026 midterm elections method.
The donation is controversial due to the Federal Election Marketing campaign Act (FECA), which limits political contributions by federal contractors. White issued an announcement on X stating that Coinbase, as a federal contractor for the U.S. Marshals Service, donated $50 million to political campaigns in violation of federal marketing campaign finance legal guidelines.
FECA prohibits federal contractors from making direct or oblique contributions to political committees, candidates, or political events. Coinbase's contract with the U.S. Marshals Service is reportedly valued at $32.5 million, with $7 million at present obligated and may very well be topic to those laws.
In response, Mr. Grewal dismissed Mr. White's claims, calling them a “misrepresentation” of truth. He additionally famous that this isn’t the primary time White has challenged Coinbase's political contributions.
White beforehand filed a grievance with FECA in August, accusing Coinbase of violating marketing campaign finance legal guidelines with comparable donations. Mr Grewal countered that it was “unwise” to repeat false claims, particularly after an earlier warning.
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