Coinbase CLO Addresses SEC Adverse Crypto Regulation Using US Election Outcome

Coinbase CLO Paul Grewal references the outcome of the United States election to address the SEC’s adverse approach to crypto regulation. 

Grewal, the Chief Legal Officer at San Francisco-based exchange Coinbase, mentioned that voters in the United States expressed a strong desire for change on several issues, including crypto regulations.

He encouraged the SEC to change its current crypto regulatory approach to a more favorable stance. Specifically, Grewal called on the SEC to engage directly with crypto-related companies instead of suing them in court. Furthermore, Grewal advised the regulator to initiate rulemaking immediately, which could provide clear regulations for the crypto industry. 

Over 200 Pro-Crypto Candidates Win 

Grewal’s comment is in reaction to the election outcome, which saw voters come out to change the status quo. Prior to the election, crypto enthusiasts expressed support for only pro-crypto candidates across various offices, including the presidency. 

Earlier today, The Crypto Basic reported that about 238 pro-crypto candidates led the charge in the U.S. Congress elections. While 224 were elected to the House of Representatives, 14 are heading to the Senate. 

For many crypto fans, the most exciting part of the U.S. 2024 election outcome is Donald Trump’s emergence as president-elect.

Trump’s support for the industry is public knowledge, as he has consistently revealed how he plans to make America the ‘crypto capital of the world.’ Part of his campaign promises for crypto includes firing SEC Chair Gary Gensler on his first day in office. 

SEC Operations Under Gensler

Many industry stakeholders see Gensler as a major threat to crypto. Under his leadership, the SEC has been aggressive, pursuing multiple enforcement actions against crypto companies. 

Coinbase is one of the victims of the Gensler-led SEC enforcement action. Last year, the SEC charged Coinbase with violating federal securities laws by operating as an unregistered exchange. 

A federal judge denied the exchange’s request for an early dismissal of the SEC charges in March. The lawsuit could see a major twist in the coming weeks when the more than 200 pro-crypto candidates are sworn into office, coupled with a potentially new SEC administration. 

Currently, there is speculation that the new SEC administration might review and possibly drop most of the lawsuits against the industry. Whether this would become a reality remains to be seen.