Coinbase Urges SEC to Allow Staff to Use Cryptocurrencies
Coinbase has asked U.S. regulators to lift a ban on SEC staff using cryptocurrencies. In letters sent on April 22, Coinbase’s Chief Legal Officer, Paul Grewal, wrote to SEC Chair Paul Atkins and the U.S. Office of Government Ethics. He argued that the current policy hinders effective regulation of the crypto industry.
Grewal believes the ban is especially problematic now. President Trump ordered the SEC and other agencies to submit proposals for digital financial leadership within 180 days. Nearly half of this time has passed, but SEC staff still can’t use the technology they regulate.
Grewal suggests practical solutions. one is to issue waivers to Crypto Task Force members and other staff working on crypto matters. This would let them understand and evaluate the technology better.
Coinbase proposes a more nuanced approach to conflicts of interest. SEC staff could own cryptocurrencies under certain conditions. Grewal argues that most crypto activity doesn’t involve securities.
As an alternative, Coinbase suggests clarifying that certain crypto holdings won’t affect asset values. This would align with the Office of the Inspector General’s views. They stated that the SEC needs to monitor the market and adapt its expertise and oversight tools.
