Coinbase Denies $46M Donation Claims Amid SEC Scrutiny
Coinbase has strongly refuted allegations from Senator Chris Murphy that it contributed $46 million to Trump’s campaigns and inauguration to secure lenient SEC regulation—a claim Murphy labelled a “corruption factory.” Coinbase’s Chief Legal Officer Paul Grewal dismissed the accusations on X as baseless, highlighted multiple court rulings against SEC overreach and noted the abrupt withdrawal of a 2023 securities lawsuit. The company pointed to decades of bipartisan inaugural donations rather than political favoritism.
Coinbase also cited strategic partnerships with Citigroup for stablecoin payments and Figment for expanded staking services on Solana (SOL), Cardano (ADA) and Sui (SUI) as evidence of its compliance focus and growth. Crypto attorney John Deaton criticised the SEC’s inconsistent approach and former chair Gary Gensler’s perceived anti-crypto agenda. Traders should watch ongoing Senate probes, the GENIUS Act and nearly 100 planned blockchain initiatives for regulatory clarity, as political scrutiny may affect market sentiment and trading strategies.
Neutral
The neutral view reflects balanced market signals. Short term, the political allegations could introduce volatility in Coinbase’s trading volume as investors react to scrutiny over alleged SEC favoritism. However, the swift rebuttals, legal wins and new partnerships with Citigroup and Figment underscore Coinbase’s continued compliance efforts and growth trajectory. Over the long term, clarity from Senate probes, the GENIUS Act and upcoming blockchain initiatives may stabilise regulatory risk and support more predictable trading strategies in the crypto sector.