Crypto exchange Coinbase has dismissed allegations that it violated campaign finance regulations.
On July 30, crypto analyst Molly White claimed that Coinbase’s $25 million donation to the crypto-oriented PAC Fairshake might have breached campaign finance laws. She noted the donation was made during Coinbase’s negotiations for a federal contract with the US Marshals Service (USMS), which the company later secured to manage seized digital assets.
White highlighted that federal law bars entities involved in federal contracts from making political contributions to avoid potential conflicts of interest. She asserted that if true, this would be a significant breach, far exceeding previous violations capped at $1 million.
Paul Grewal, Coinbase’s Chief Legal Officer, countered White’s assertions, labeling them as inaccurate. He explained that Coinbase does not qualify as a federal contractor under the specific regulation (11 CFR 115.1) since the USMS is not paying Coinbase with federal funds.
Instead, the payments come from the Assets Forfeiture Fund, which consists of proceeds from confiscated property, not taxpayer money.
Grewal’s statement emphasized that the regulatory definition of a federal contractor involves entities paid with appropriated funds, which is not the case with Coinbase’s arrangement with the USMS.
According to crypto analytics firm Santiment, the decentralized oracle network Chainlink (LINK) leads all ERC-20 projects in development activity.
Vice President Kamala Harris, the Democratic candidate for the upcoming presidential election in November, recently spoke at a Wall Street fundraiser where she addressed the cryptocurrency industry for the first time.
Donors from Wall Street, Silicon Valley, and Hollywood played a key role in helping Vice President Kamala Harris’ fundraising efforts in August, giving Democrats a financial advantage over Donald Trump on the cusp of the run-off election.
Pro-XRP attorney John Deaton, who has secured the Republican nomination for a Massachusetts Senate seat, will face off against Democratic Senator Elizabeth Warren in a highly anticipated debate on October 15, 2024.