TechFlow news: Cryptocurrency critic Molly White and consumer advocacy group Public Citizen filed an updated complaint with the Federal Election Commission (FEC), continuing to accuse Coinbase of violating U.S. campaign finance laws.
The complaint alleges that Coinbase's $25 million donation to the Fairshake super political action committee is illegal because Coinbase qualifies as a "federal contractor."
Coinbase Chief Legal Officer Paul Grewal denied the allegations, stating the company is not a federal contractor. White and Public Citizen countered that since asset forfeiture funds originate from congressional appropriations, Coinbase remains a federal contractor.
Grewal responded that seized cryptocurrencies do not constitute congressional appropriations and emphasized Coinbase's equal donations to bipartisan super PACs. Rick Claypool, research director at Public Citizen, criticized Coinbase for exploiting legal loopholes and called on the FEC to strengthen enforcement.
