Coinbase’s Chief Legal Officer Paul Grewal called the claims “misinformation,” clarifying that Coinbase isn’t subject to certain campaign finance rules.
Paul Grewal, the chief legal officer of Coinbase, denied that his company broke campaign finance rules when it gave $25 million to a super political action committee (PAC) in May of this year.
In a report released on July 31, well-known crypto skeptic Molly White said that Coinbase “appears” to have broken campaign finance laws by giving money to the Fairshake crypto super PAC while negotiating for a federal government contract.
Grewal rebelled against these claims in a post to X on August 1. He said Coinbase was not a government contractor because of the “plain language” part of the Code of Government Regulations 111.51.
Grewal said, “USMS made it clear in the public [request for proposal] that it is not paying us with appropriated funds.”
“Whether intentional or not this is misinformation.”
In November 2023, Coinbase gave $5 million to the Fairshake super PAC. In December 2023, they gave $15.5 million; on May 30, 2024, they gave $25 million.
White said that Coinbases’ proposal request came out on March 4, 2024, and the contract finished “no sooner” than June 30, 2025. He also said the $25 million donation on May 30 fell “well within” the deadline.
Lawyer for government affairs Dr. Craigh Holman told White that it was “illegal for a federal contractor to make a campaign contribution to any federal committee, including a super PAC.” He also said that White should file a complaint with the FEC.
But in a follow-up statement on X, Grewal said that all the money for the proposal request came from the Assets Forfeiture Fund. This fund is obtained from the sale of property forfeited to the US Government by the Department of Justice.
The Fairshake Super PAC’s website wants to reach its goals by “giving blockchain innovators the ability to build their networks under a clearer regulatory and legal framework.”
Notably, the Fairshake crypto super PAC has raised more than $202 million this year, and many of the biggest names in crypto, including Coinbase, have given money to it. At the moment, it is the biggest super PAC in the 2024 race.