Coinbase urges the SEC to allow staff to use cryptocurrencies
Paul Grewal said regulators must engage with crypto technology to oversee the industry effectively, calling the current ban counterproductive.
Coinbase has formally asked US regulators to lift the ban preventing Securities and Exchange Commission (SEC) staff from buying, selling, or using cryptocurrencies that are not considered securities.
Chief Legal Officer Paul Grewal sent letters to SEC Chair Paul Atkins and the US Office of Government Ethics on 22 April.
He argued that the restriction limits the regulators’ ability to oversee the crypto sector properly. Grewal emphasised that the ban is particularly damaging. The SEC is working under a presidential order to propose regulatory reforms supporting America’s leadership in digital finance.
Nearly half the given timeframe has already passed, yet SEC staff remain unable to engage with the technology they are meant to regulate. Coinbase warned that effective oversight requires hands-on experience with crypto assets.
The company also suggested allowing ownership of certain cryptocurrencies under conditions that would prevent conflicts of interest. According to Coinbase, the changes would align with the Office of the Inspector General’s call for regulators to adapt in a rapidly evolving market.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.
