As cryptocurrencies have become a major issue in the US presidential campaign, the Coinbase exchange platform is the subject of a complaint. It is accused of violating the law on campaign finance. What does this mean?
Coinbase Accused of Violating Campaign Finance Law
Cryptocurrency researcher and critic Molly White filed the complaint, along with consumer group Public Citizen. The report was filed with the Federal Election Commission, and He claims Coinbase violated campaign finance rules.
According to Public Citizen, The exchange reportedly gave $25 million to pro-crypto group Fairshake Super PAC. It is a political group that promotes the crypto ecosystem to politicians. But at the same time, Coinbase is also said to have negotiated contracts with the US government, particularly the Department of Justice (DOJ).
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The DOJ currently employs Coinbase for custody services, which would make the company an official contractor to the U.S. government. However, the campaign finance law does not allow these entities to make donations to political campaigns.. This is why the exchange platform is accused of not respecting the rules.
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The accusations come amid a tense political climate.
Coinbase Legal Officer Paul Grewal Responds to Accusations About His X Account. He claims that Coinbase is not an official government service provider, citing a law to support his claim. But Public Citizen's lawyers say his argument is irrelevant.
This is therefore a new legal matter that could open up for Coinbase. It is now the FEC's turn to examine the complaint to determine whether it is admissible or not.If it were, the legal battle that would ensue could be difficult for the exchange platform.
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Many companies and personalities from the world of cryptocurrencies have made donations to the current U.S. presidential campaignAt this point, the Republican camp has multiplied its marks of support for the ecosystem, while the Democrats are trying to create new bridges with the industry.
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Source: Public Citizen
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A journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance, analyzing how news from this sector influences the cryptocurrency sector, offering a unique and informed perspective to Cryptoast readers.
Marine Debelloir
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