Coinbase Responds to Allegations of Trump Administration Ties

Faryar Shirzad, chief policy officer at US-based cryptocurrency exchange Coinbase, has addressed criticisms leveled by a US senator concerning the company’s perceived connections to the Trump administration.

In a recent post on X (formerly Twitter), Shirzad responded to claims made by Connecticut Senator Chris Murphy. The senator alleged that Coinbase was a component of what he termed US President Donald Trump's “corruption factory,” citing the exchange's contributions to the political action committee (PAC) Fairshake and its financial support for the 2025 inauguration. Murphy suggested a direct link between these contributions and the US Securities and Exchange Commission (SEC) dropping an enforcement action against Coinbase, an action initiated during the previous administration.

Addressing Murphy’s assertion that Trump had solicited a “big donation from Coinbase for [his] ballroom,” Shirzad stated that Coinbase was “proud to have supported the building of a new ballroom through the Trust for the National Mall,” highlighting that numerous companies had contributed to the fund. Shirzad also contested the corruption claims, emphasizing that Fairshake is a “non-partisan” PAC and that previous inaugurations have benefited from similar public donations.

Background on the Ballroom Project and Coinbase's Contributions

Trump initially announced plans for a 90,000 square-foot ballroom on the White House grounds in July, estimating the project's cost at approximately $200 million and stating it would not “touch” the East Wing – the historic section housing the Office of the First Lady. However, recent photos revealed the complete demolition of the East Wing as part of the ballroom construction, with the project's estimated cost now reaching $350 million, according to Trump.

“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 clarified in response to Murphy.

Coinbase's Broader Engagement in Washington

The ballroom controversy isn't the first instance where Coinbase's financial involvement in projects associated with the Trump administration has garnered attention. In June, the exchange was prominently featured among the sponsors for the US Army's 250th-anniversary celebration, which included a military parade coinciding with Trump's birthday. Coinbase’s involvement stemmed from a one-time contribution to America250, a “nonpartisan initiative” organizing events for the US’s semiquincentennial.

Coinbase CEO Brian Armstrong recently engaged with lawmakers amidst a US government shutdown – then in its 31st day – to discuss cryptocurrency market structure legislation. Republican leadership had aimed to advance the Responsible Financial Innovation Act in the US Senate out of committee by the end of October. However, the ongoing shutdown raises questions about whether cryptocurrency legislation will remain a priority in Congress.