- Paul Grewal reiterated the need for a serious upgrade in the US crypto rules.
- He highlighted that the country should embrace new regulations to withhold its leading position in crypto.
- Grewal discussed the ways in which the legislation should modify the crypto regulation.
Paul Grewal, the Chief Legal Officer of the leading crypto exchange Coinbase, addressed the crypto community with the testimony, underscoring the “critical need for new rules for crypto.” Grewal advocated that the US crypto space should have a serious upgrade and a regulatory framework that embraces the possibilities of crypto to stand firm at the forefront of digital currencies.
Notably, Grewal incorporated the findings of the business intelligence company Morning Consult, that 80% of Americans support the need for a “complete overhaul” of the current seemingly “unfair” financial system. He added that if the need is not considered, the country would have to surrender its current economic and geopolitical leadership.
Interestingly, Coinbase’s legal advisor pointed out the urgency of the situation by exemplifying the global power like the European Union (EU) that created the comprehensive regulatory framework, quoting:
The EU, for example, is working to implement Market in Crypto-Assets (“MiCA”) legislation, which created a comprehensive regulatory framework intended to close the gaps in existing financial services legislation and establish a harmonized set of rules designed for crypto assets, companies, and services.
In addition, Grewal elaborated on the various ways in which Coinbase has been successful in maintaining a safer crypto economy, including the reliable and efficient digital ecosystem, the prevention and detection of illicit activity, and much more.
However, he reiterated the need for a new system of crypto regulation, claiming that the current rules are incompatible with blockchain technology. He commented that:
Today’s rules in the U.S. do not account for the technological ways in which crypto markets operate.
Further, he insisted on embracing the latest paths of the crypto space, including the crypto companies registering as the National Securities Exchange (NSE) and the proper registration of assets as securities.
Moreover, Grewal put forward the novelty the legislation should uphold; he suggested that the legislation should introduce consumer protection standards, limit trade to registered companies, list new security tokens, raise funds, peg stablecoins to real assets, and so on.
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