Coinbase Urges SEC to Allow Staff to Use Cryptocurrencies
Coinbase has asked U.S. regulators to lift the ban on SEC staff buying, selling, or using non-securities cryptocurrencies. In letters dated april 22, Paul Grewal, Coinbase’s Chief Legal Officer, wrote to SEC Chair Paul atkins and the U.S.Office of Government Ethics. He argued that the current policy hinders effective oversight of the crypto industry.
Grewal believes the prohibition 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 period has passed, but staff still can’t use the technology they regulate. This, he says, undermines effective regulation.
Current rules prevent SEC employees from engaging with crypto. Grewal thinks this hampers their ability to understand and regulate the industry. He notes that using technology is key to understanding it. The SEC Crypto Task Force’s work is hindered by this ban. He wants the Office of Government Ethics to update Legal Advisory 22-04. This advisory stops commission staff from using crypto. Grewal suggests issuing waivers to Crypto Task Force members. This would let them use the technology they oversee. He believes conflicts can be managed easily. He calls for a more flexible approach.He wants the SEC to allow staff to own crypto under specific conditions. This would help the SEC stay up-to-date with crypto trends.
Grewal proposes that SEC staff could own crypto under certain conditions. This would not affect the value of the assets. He believes this aligns with the Office of the Inspector General’s views. The office stated that the SEC needs to adapt its expertise and oversight tools continuously.
