Coinbase’s Chief Legal Officer, Paul Grewal, has publicly criticized U.S. Senator Chris Murphy. The lawmaker accused the company of corruption linked to President Donald Trump. Murphy claimed Coinbase donated $46 million to support Trump, suggesting a political payoff tied to the SEC lawsuit against the exchange.
Murphy’s Allegations Trigger Coinbase CLO’s Strong Rebuttal
In a detailed post on X, Senator Murphy outlined what he called an example of “Trump’s corruption factory.” He alleged that Coinbase contributed heavily to Republican campaigns, sent a large donation for Trump’s inauguration.
Hence, it benefited when Trump supposedly influenced regulators to drop the SEC’s case. The post drew immediate attention across the crypto and political communities. Paul Grewal, the Chief Legal Officer (CLO) for Coinbase, responded sharply, calling Murphy’s claims “misinformed” and “false.”
He urged Murphy to “do your homework,” emphasizing that Coinbase has repeatedly sought regulatory clarity rather than political favors. Meanwhile, the company has continued expanding legitimate partnerships. An example is the recent collaboration between Coinbase and Citigroup to enable stablecoin payments.
The Coinbase CLO further said that the real corruption was not with Coinbase but with how the SEC handled crypto regulation. Grewal argued that the SEC had allowed Coinbase to go public, calling it in the “public interest,” only to later sue the company for operating illegally.
“What was corrupt was allowing us to go public and then suing us,” Grewal wrote. He added that the SEC’s denial of Coinbase’s rulemaking petition had been ruled “arbitrary and capricious” by a federal court. However, Coinbase recently partnered with Figment to enhance staking on Solana, Cardano, and Sui networks.
This followed the crypto-friendly stance of current president Trump, which has now enabled the crypto firm to keep expanding its institutional services. The move further reinforced its position as a compliant and growth-focused exchange.
Deaton Highlights SEC Bias
Another lawyer who defended the interests of XRP owners in the Ripple lawsuit, John Deaton, was also part of the argument. He accused the SEC of hypocrisy, pointing out that it approved Coinbase’s IPO before later labeling its business model illegal.
Deaton said the contradiction highlighted a broader issue of regulatory inconsistency driven by political motives. The attorney further accused former SEC Chair Gary Gensler of following political orders to advance an “anti-crypto agenda.”
He also referenced Senator Elizabeth Warren’s tough stance on the industry. Deaton criticized Murphy for ignoring these issues while attacking Coinbase, saying such partisanship “places politics above American innovation.”
The back-and-forth between Murphy, Grewal, and Deaton has rekindled memories of the sufferings of crypto players when Gensler was SEC chair. However, there have been significant changes in the positive direction since Trump assumed the Oval Office. One such positive was the dropping of the SEC case against Coinbase.
Source: https://coingape.com/coinbase-clo-rebuts-senator-murphys-corruption-factory-claim/
