Coinbase CLO Paul Grewal Rebukes Senator Chris Murphy’s “False” Corruption Claims

Coinbase’s Chief Legal Officer, Paul Grewal, has strongly refuted U.S. Senator Chris Murphy’s allegations accusing the crypto exchange of corruption linked to President Donald Trump. Murphy claimed that Coinbase donated $46 million to support Trump, implying a political payoff that led to the SEC dropping its lawsuit against the company.

In a post on X, Senator Murphy called Coinbase a part of “Trump’s corruption factory,” alleging the company benefited from political favoritism after contributing to Republican campaigns. The post quickly went viral in both political and crypto circles.

Grewal swiftly responded, labeling the claims as “misinformed” and “false.” He urged Murphy to “do your homework,” stressing that Coinbase has consistently advocated for regulatory clarity rather than political influence. The CLO highlighted the company’s ongoing legitimate partnerships, such as its recent collaboration with Citigroup to expand stablecoin payment solutions.

According to Grewal, the true issue lies in the SEC’s inconsistent approach to crypto regulation. He criticized the agency for approving Coinbase’s IPO as being 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,” he stated. Grewal also pointed out that a federal court ruled the SEC’s denial of Coinbase’s rulemaking petition as “arbitrary and capricious.”

Attorney John Deaton, who previously represented XRP holders in the Ripple lawsuit, also joined the debate. Deaton accused the SEC of hypocrisy and political bias, arguing that the agency’s actions under former Chair Gary Gensler were motivated by anti-crypto politics.

The renewed confrontation highlights growing political divisions over crypto regulation. With Trump’s administration now seen as more crypto-friendly, Coinbase continues to strengthen its institutional services, including new partnerships with Figment for staking on Solana, Cardano, and Sui networks.