Following the demolition of the White House East Wing to make way for a new ballroom, Coinbase is defending its decision to contribute to the project. The initiative, spearheaded by President Donald Trump, aims to construct a 90,000-square-foot ballroom capable of accommodating up to 999 guests. The project's cost is estimated at $300 million and is being financed through private donations.
The decision to demolish the East Wing and fund the ballroom through private donations has sparked both criticism and support. Critics raise concerns about potential ethical conflicts and the influence of donors on policy decisions. Conversely, supporters argue that the project modernizes the White House without burdening taxpayers. The White House has dismissed the criticism, labeling it as "manufactured outrage" from political opponents and media outlets.
Coinbase, a major U.S. cryptocurrency exchange, is among a list of high-profile donors that include tech giants like Apple, Google, Microsoft, and Amazon, as well as crypto firms Ripple and Tether. The White House has released a list of 37 donors. While the exact amount of each contribution remains undisclosed, President Trump stated that over $350 million has been raised for the project.
In response to allegations of corruption from a U.S. senator, Coinbase's chief policy officer stated that the company was "proud to have supported the building of a new ballroom". The company is currently seeking SEC approval to offer blockchain-based stocks. Some observers suggest that Coinbase and other crypto firms are aiming to strengthen ties with policymakers and gain regulatory influence through these donations. The Trump administration has expressed its intention to establish the U.S. as the "crypto capital of the world".
The ballroom project signifies a notable moment for the cryptocurrency industry, marking its direct involvement in funding federal infrastructure. Ripple, another major player in the crypto space, has also contributed a substantial sum to the project. Executives from Ripple, including CEO Brad Garlinghouse, have met with U.S. officials and President Trump at a blockchain summit earlier this year.
The donations from crypto companies have raised questions about potential quid pro quo scenarios. For example, the SEC closed a long-running investigation into the Gemini crypto exchange, owned by Cameron and Tyler Winklevoss, shortly after the twins donated over $2 million to MAGA Inc. Additionally, the Winklevoss brothers successfully lobbied President Trump to withdraw his nominee to run the Commodity Futures Trading Commission. Earlier this year, the SEC also withdrew a lawsuit against Coinbase shortly after the company donated $1 million to President Trump's inauguration.
The construction of the White House ballroom is currently underway, with the aim of creating a state-of-the-art venue for official events and gatherings. The project reflects a blend of private sector funding and government initiatives, sparking ongoing debate about the role of corporate influence in shaping public policy.
