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Describing the allegations as “misinformation” — Coinbase chief legal officer Paul Grewal said Coinbase was exempt from certain campaign finance regulations as it is not a federal contractor.
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Coinbase chief legal officer Paul Grewal has refuted accusations that his crypto exchange violated campaign financing laws by making a $25 million donation to a super political action committee (PAC) in May this year.
In a July 31 report, prominent crypto skeptic Molly White claimed that Coinbase “appears” to have violated campaign finance laws by making a donation to the Fairshake crypto super PAC while they were engaged in active negotiations for a federal government contract.
Grewal rebuked these claims in an Aug. 1 post to X, saying that Coinbase was not a federal contractor under the “plain language” clause of Code of Federal Regulations 111.51.
“USMS isn’t paying us with appropriated funds — something it made clear in the public [request for proposal],” Grewal said.
“Whether intentional or not this is misinformation.”
Coinbase donated $5 million to the Fairshake super PAC in November 2023, $15.5 million in December 2023, and $25 million on May 30, 2024.
White claimed that with Coinbases’ request for proposal issued on March 4, 2024 and a contract that ended “no sooner” than June 30, 2025, combined with the $25 million contribution on May 30 — the donation fell “well within” the prohibited period for contributions.
Related: Coinbase shares rise 3% as Q2 crypto trading doubles from last year
Government affairs lobbyist Dr. Craigh Holman told White it was “illegal for a federal contractor to make a campaign contribution to any federal committee, including a super PAC,” adding that it would be appropriate to file a complaint with the FEC.
However, in a follow-up comment on X, Grewal said all funds associated with the request for proposal had been paid out of the Assets Forfeiture Fund, which receives proceeds from the sale of property forfeited to the US Government under the purview of the Department of Justice.
According to its website, the Fairshake Super PAC aims to achieve its goals by “providing blockchain innovators the ability to develop their networks under a clearer regulatory and legal framework.”
Notably, the Fairshake crypto super PAC has raised over $202 million this year and features a litany of crypto’s largest firms as donors, including Coinbase. It currently stands as the largest super PAC of the 2024 election.
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This article first appeared at Cointelegraph.com News
