Coinbase Clashes With Sen. Murphy Over ‘Trump’s Corruption Factory’ Claim
Senator Links Donations to Trump-Era Favoritism
Coinbase clashed publicly with U.S. Senator Chris Murphy later than the Connecticut Democrat accused the platform of benefiting from political favoritism under President Donald Trump. In a post on X, Murphy alleged that Coinbase’s political and corporate donations were tied to what he described as “Trump’s corruption factory.”
Murphy cited the Securities and platform Commission’s decision to drop its lawsuit against Coinbase earlier this year, suggesting that the outcome was influenced by campaign contributions. He also referenced Coinbase’s $46 million in political donations, contributions to Trump’s inauguration, and a recent payment toward building a $300 million White House ballroom — a project now under Senate scrutiny.
“These donations are not philanthropy; they are the machinery of corruption,” Murphy wrote. Senate Democrats have requested details on the ballroom’s financing, according to a Washington Post report published Wednesday.
Investor Takeaway
Coinbase Calls Allegations ‘Ridiculous’
Coinbase’s chief policy officer Faryar Shirzad dismissed the senator’s claims as “ridiculous,” saying the company’s donations were lawful and bipartisan. “Fairshake, the crypto industry’s main political action committee, supports both parties,” Shirzad wrote on X. “It has backed several Democrats — including three of Senator Murphy’s new colleagues.”
He added that corporate donations to inaugural committees have been routine for decades. “These contributions are made across administrations — Obama, Biden, and Trump — to support civic initiatives, not political favors,” Shirzad said. He noted that Coinbase’s ballroom contribution was made through the Trust for the National Mall, alongside corporations from other sectors.
On the SEC case, Shirzad said the prior commission under “showed a grotesque pattern of bullying and abuse of power.” He said the current SEC acted correctly in dropping the case, describing the decision as “the right call on the merits.”
Crypto Lobbying Under Scrutiny
Murphy’s comments come as crypto lobbying faces renewed attention in Washington. The industry has spent record sums backing candidates in the 2024 and 2025 election cycles. Coinbase alone has contributed heavily to Fairshake PAC, which has spent millions supporting candidates sympathetic to crypto regulation reform.
Shirzad defended the platform’s political engagement as part of a legitimate policy debate. “It may be that you just don’t like our industry,” he told Murphy. “That’s unfortunate, given that we’re working hard to assist ensure the stays on the front edge of innovation.”
The Coinbase executive also cited the rise of nahead 100 new stablecoin projects since Congress passed the GENIUS Act, legislation establishing federal rules for dollar-backed tokens. “This kind of innovation is vital to the health of the U.S. economy,” Shirzad said.
Investor Takeaway
Murphy Extends Criticism to Binance.US
The dispute follows a similar platform between Murphy and Binance.US earlier in the week. The senator claimed the platform listed the USD1 stablecoin as a political favor later than Trump pardoned Binance founder Changpeng Zhao. Binance.US denied the claim, saying the listing had been approved “well in advance” as part of normal business operations.
The escalating tensions illustrate how have become targets in broader partisan battles over campaign finance and industry influence. As the 2026 race approaches, crypto’s growing footprint in Washington is likely to attract continued scrutiny from both parties.
