Coinbase, a well-known bitcoin exchange in the U.S., is getting more attention after giving $25 million to Fairshake, a super political action committee (PAC). The donation, which happened on May 30, has made people worry that federal campaign finance rules might have been broken.
Molly White, the creator of the website “Web3 is Going Just Great” and a well-known critic of the cryptocurrency industry, has brought up the timing of Coinbase’s donation. White says the donation might be against federal rules that say businesses that are negotiating for government contracts can’t give money to political campaigns.
Donation Linked to Contract
Coinbase’s bid for a deal with the federal government is at the heart of the problem. The U.S. Marshals Service asked for bids on March 4 on how to handle and get rid of cryptocurrency stocks. After that, on July 1, just over a month after the PAC donation, Coinbase was given the $32.5 million deal.
“This $25 million contribution […] appears to be in violation of federal campaign finance laws that prohibit contributions from current or prospective federal government contractors. This would be by far the largest known illegal campaign contribution by a federal contractor.”
Molly White
White’s claims make it sound like the significant donation to Fairshake might have something to do with the company’s bid for the government contract. Federal rules about campaign finance are meant to stop possible conflicts of interest and unfair influence in the way the government buys things.
After all the attention, Coinbase still hasn’t replied, and no official charges have been brought against them. But because the donation and the contract were given, the exchange is likely to be closely looked at by both regulators and people who follow the business. As the investigation goes on, people who work with cryptocurrencies will be keeping a close eye on any new information that could affect rules about campaign finance.
