Coinbase Defends Itself Against Trump-Linked Funding Allegations

Coinbase’s Chief Policy Officer, Faryar Shirzad, has rejected accusations from U.S. Senator Chris Murphy that the exchange is part of a “corruption factory” connected to Donald Trump’s administration. In a Thursday post on X, Murphy claimed Coinbase had contributed to political action committee (PAC) Fairshake and helped fund Trump’s 2025 inauguration, implying a link between the donations and the SEC’s decision to drop a previous enforcement action against the company. Coinbase Pushes Back Against Accusations Responding to the allegations, Shirzad denied any political bias or wrongdoing. He explained that Coinbase was “proud to have supported the building of a new ballroom through the Trust for the National Mall,” emphasizing that many companies contributed to the same fund. “Note that we’re not the general contractor, so we’re not the right target if you’re unhappy about how the project is proceeding,” Shirzad said. He added that Fairshake was “non-partisan,” stressing that many public donations have supported inauguration events for past administrations. Trump’s Ballroom Project and Controversy Trump first announced plans in July to construct a 90,000-square-foot ballroom on White House grounds, estimating the cost at $200 million and assuring the project wouldn’t affect the East Wing. However, recent photos revealed the East Wing had been demolished as part of the construction, and Trump later said costs had risen to $350 million. Murphy’s criticism focused on what he saw as corporate favoritism — but Coinbase maintains its involvement was part of a broader civic project, not political influence. Coinbase’s Growing Political Footprint The ballroom funding issue isn’t the first time Coinbase’s relationships with Washington have drawn scrutiny. In June, the company was listed among sponsors for a U.S. Army 250th anniversary parade coinciding with Trump’s birthday. Coinbase said its participation was a one-time contribution to America250, a nonpartisan initiative marking the nation’s semiquincentennial. Coinbase CEO Brian Armstrong also recently visited lawmakers in Washington to discuss crypto regulation as the U.S. government shutdown entered its 31st day. The visit focused on advancing the “Responsible Financial Innovation Act,” aimed at providing clearer crypto market structure rules. While the bill was expected to move forward by late October, the ongoing shutdown has stalled legislative progress, leaving Coinbase’s regulatory ambitions uncertain.