Coinbase’s $46 million donation to President Donald Trump’s inauguration committee has raised eyebrows, with critics questioning the crypto exchange’s motives. Senator Chris Murphy alleged that the Coinbase donation to Trump’s initiatives is linked to the SEC’s decision to drop the lawsuit.

According to recent reports, the Coinbase donation has sparked a heated debate, with Senator Chris Murphy accusing the crypto exchange of being part of a “corruption factory”. However, Coinbase defended its donation as part of a broader corporate initiative to support a federally recognized public project.

Coinbase Donation Faces Criticism

In a recent X post, Senator Chris Murphy accused Coinbase of being part of “Trump’s corruption factory,” due to its substantial donations to the President’s initiatives. The allegations center around Coinbase’s $46 million in political spending, contributions to Trump’s inauguration, and a donation to the White House ballroom project.

Murphy suggests that these actions influenced the Securities and Exchange Commission’s decision to drop the Coinbase lawsuit. He noted.

“Here’s an example of how Trump’s corruption factory works. 1. Coinbase put $46M into elections to help Trump allies. 2. Sends him a huge check for his inauguration. 3. Trump drops SEC lawsuit against Coinbase. 4. Trump demands big donation from Coinbase for ballroom.”

Coinbase Refutes Allegations

In response to the Coinbase donation allegations, Chief Policy Officer Faryar Shirzad argued that the exchange’s contributions were lawful and nonpartisan. He dismissed the corruption claims as “ridiculous,” and added that the Senator “ignored basic facts” while attacking the exchange. Shedding light on the Coinbase donation to Fairshake PAC, which is a political action committee funded by several crypto firms, Shirzad noted,

“Fairshake is a non-partisan super PAC…Ask your staff to look up the public disclosures, and you’ll see that Fairshake supported multiple Democrats, including three of your new Senate colleagues.”

He noted that inaugural committees have long been supported by public donations, referencing the Obama, Biden, and Trump administrations. As per reports, Coinbase, Kraken, and Circle each gave $1 million to Trump’s inauguration, with Robinhood donating $2 million.

White House Ballroom Donation Claims Dismissed

Dismissing allegations against the Coinbase donation to the White House ballroom, Faryar Shirzad stated that the move was part of a broader corporate initiative to back a federally recognized public project. He added,

“We’re proud to have supported the building of a new ballroom through the Trust for the National Mall, a 501(c)(3) partner of the National Park Service…Corporations from all industries donated as well. Note that we’re not the general contractor, so we’re not the right target if you’re unhappy about how the project is proceeding.”

SEC Lawsuit and Donations

Further, Shirzad denied any link between Coinbase’s donations and the SEC’s decision, amid the ongoing lawsuit over unregistered securities exchange operations and staking program concerns.

In 2023, the SEC sued Coinbase for allegedly operating without proper registration as a securities exchange and for concerns regarding its staking program. The SEC dropped its lawsuit against Coinbase in February 2025, reflecting a possible change in crypto regulation under new leadership.

Reflecting on this milestone, Shirzad noted, “The SEC lawsuits against Coinbase and dozens of other companies were part of a grotesque pattern of bullying and abuse of power by the previous chair.” The regulator has also dropped cases against several crypto companies, such as Ripple Labs, Kraken, Gemini, Consensys, Robinhood, and Yuga Labs.

Conclusion

In conclusion, Coinbase’s $46 million donation has sparked a political firestorm, with critics alleging corruption and favoritism despite the exchange’s unwavering denials of any wrongdoing. Coinbase insists the contributions were public, legal, and part of a wider corporate giving scheme—not a scheme to bribe regulators.

Frequently Asked Questions

1. Why is the donation from Coinbase for $46 million controversial?
   Critics like Senator Chris Murphy allege it had a role in – and was possibly a factor in – the SEC’s decision to drop its lawsuit against Coinbase.
2. How has Coinbase responded to the allegations?
   Coinbase said it did nothing illegal and that the donation was legal, transparent, and bipartisan.
3. Was the donation for the White House ballroom associated with politics?
   Coinbase denied that, saying it was part of a corporate initiative to support a federally recognized public project.

Glossary

• SEC: The United States government agency that regulates securities markets and protects investors.
  PAC (Political Action Committee): A group that raises and spends money to support political candidates or causes.
  Fairshake PAC: A non-partisan super PAC funded by crypto companies designed to support pro-innovation politicians.

 

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The altcoin market is currently facing a downturn, with over half of the crypto assets struggling to stay afloat. With more than 300 assets tanking 30-60% and losses dwarfing gains, the distress is palpable.

According to Arkham Intelligence data, the number of altcoins that have plummeted by over 60% in the past year exceeds those that have managed to gain value. Amidst this uncertainty, all eyes are on altcoin ETFs. Investors and analysts alike are monitoring the altcoin ETF developments to see if they could bring a fresh wave of enthusiasm to the market.

Altcoin Market Plunges Along with Bitcoin

As Bitcoin hovers below the significant $110k range, the altcoin market is also witnessing increased pressure. Top assets like Ethereum, XRP, BNB, and Solana have experienced significant declines of 11%, 8%, 12%, and 12.2%, respectively, over the past week.

Arkham data revealed a stark imbalance in the altcoin market, which is now dominated by losses. More coins have plummeted over 60% in value compared to those posting gains over the past year. The scope of the decline is broad, with over 300 crypto assets – including dogwifhat (WIF) and Shiba Inu (SHIB) – losing 30-60% of their value. This suggests that a significant portion of the altcoin market, potentially over half, is in trouble.

The underperformance of these assets comes as no surprise, given the sharp decline in the altcoin season index (ASI) in H1 2025, which followed a brief rally sparked by the US election in late 2024. The ASI plummeted from nearly 90% to around 10%, erasing the gains made in 2024, largely due to the impact of tariff wars.

A brief resurgence in Q2 2025 saw altcoins gaining momentum through July-September, buoyed by a favorable macro environment. However, the optimism was short-lived, as the October crash and renewed US-China tariff tensions soured sentiment. Although the tariff issue has since been resolved, the crash’s impact lingers, dampening risk appetite and shifting the ASI from ‘altcoin season’ territory to neutral.

Can ETF Hype Trigger an Altcoin Market Rally?

Notably, market experts and analysts have been optimistic about the impact of ETF approvals and launches on the altcoin market. Many believed that the ETF mania could be the trigger for altcoins like SOL and XRP.

Onchain research head Leon Waidmann asserted that each altcoin ETF approval could “open the door for the next wave of institutional buying.” He added,

“Altcoin ETF inflows are the inevitable next step after Bitcoin and Ethereum ETFs proved institutional demand. This is regulatory confidence translating into capital flows.”

Despite record-breaking inflows for the Bitwise SOL ETF, the token’s price has consolidated between $180 and $200. XRP is also facing resistance at $2.7 ahead of potential ETF approvals, but options data hints at near-term optimism. Meanwhile, Chainlink (LINK) and Artificial Superintelligence Alliance (FET) are attracting major accumulation interest, with large outflows from Binance.

Is a Bull Run Ahead?

Although a bearish outlook presently exists, experts like Michael van de Poppe believe in a potential bull run as a desired outcome. Van de Poppe says that the correction evident since the Federal Reserve’s meeting has likely impacted investor confidence, though there seems to be preliminary data building for a turnaround.

Historically, the crypto market has followed the Federal Reserve’s monetary policy. Bitcoin surged, as did altcoins, when the Fed cut rates in 2020 and engaged in quantitative easing. Conversely, since the Fed began its tightening process and rate raises in late 2021, there has been a confirmed bear market.

The more recent indications from the Fed appear to be a shift in their priorities toward employment and economic growth rather than solely inflation. Additional weak labor and business data may push the Fed into a plan for further rate cuts down the road, which could put further liquidity into the market and create strong interest in risk assets such as cryptocurrencies.

Conclusion

The market for alternative cryptocurrencies is in a slump, with many alternative cryptocurrency assets unable to maintain any gains. There are still signs of hope in terms of potential approval for ETFs and a change in monetary policy from the Fed. While analysts believe we could be near a bull run or a rebound, they have pointed to institutional buying as being at “record highs,” in addition to the positive market analysis.

Frequently Asked Questions

1. Why is the altcoin market in its current downtrend?
   The altcoin market is down due to weak investor psychology, tariff tensions, and a downtrend in Bitcoin prices that has led to bearish perceptions.
2. Would altcoin ETFs help the market recover?
   Yes. If altcoin ETFs are approved, it will provide more institutional credibility in those assets and will lead to more positive psychology in the market.
3. What could trigger the next bull run?
   A shift in the Federal Reserve’s monetary policy toward rate cuts could inject liquidity and spark a crypto bull run.

Glossary

• Altcoin: It encompasses every virtual currency except for Bitcoin, which includes Ethereum, Solana, XRP, and a lot more.
• ETF (Exchange-Traded Fund): An investment vehicle that replicates the value of an underlying asset or a group of assets, thus allowing the investor to participate without direct ownership of the assets.
• Altcoin Season Index (ASI): An indicator that reveals if altcoins are getting more in value as compared to Bitcoin, which indicates periods of strong altcoin performance.
• Rate Cuts: The Federal Reserve’s action of reducing interest rates to stimulate the economy and increase liquidity in the market.
• Quantitative Easing (QE): A central bank’s monetary policy where it injects money into the economy by purchasing financial assets, thereby making borrowing and investing more appealing.

Read More: Altcoin Market Plunges as Over 300 Tokens Lose 30-60% of Their Value">Altcoin Market Plunges as Over 300 Tokens Lose 30-60% of Their Value