Coinbase asks the SEC to create crypto regulations and stop taking the enforcement approach.
As Trump made it out of the 2024 US presidential election with a tremendous lead, making him the 47th president, the crypto industry looks at what is next. Coinbase’s chief legal officer, Paul Grewal, took the occasion to ask the US Securities and Exchange Commission (SEC) to treat crypto better.
“I hope @SECGov understands what has happened tonight,” Grewal posted on X. He claimed Trump’s victory came as a product of US citizens wanting change—and that applied to crypto as well. He added, “Stop suing crypto. Start talking to crypto. Initiate rulemaking now. There’s no reason to wait.”
Grewal’s sentiment echoed what other executives, legal professionals or not, in the crypto space feel. He wants the financial regulator to stop taking the litigation approach with the industry, which has massively stifled innovation over the years. Instead, he wants it to formulate and establish a regulatory framework, offering clear insight into how crypto firms can operate within legal bounds.
His request aligns with Trump’s victory for multiple reasons, including the president-elect’s pro-crypto stance. Trump has previously mentioned wanting to be the crypto president, making the US the crypto capital, and instituting a Bitcoin strategic reserve to pay off US debt.
Trump Has Promised to Fire the SEC Chair
More importantly, Trump has mentioned firing Gary Gensler, the SEC chair who has led the organization to bring one enforcement action after the other at crypto firms. He has also spoken about the Biden-led administration being anti-crypto.
There is no doubt among the crypto community that his leadership has driven the regulator to take an anti-crypto stance. That has prevented the US crypto industry from developing on par with friendly jurisdictions like the UAE and others.
The SEC has spared no one, including Coinbase, its rival and the biggest crypto exchange by spot trading volumes, Binance, and DeFi projects like Uniswap. Essentially, without crypto regulations, firms in the US are operating in the dark, only to be accused of crossing legal lines when the SEC sends them a Wells notice.
Nevertheless, the SEC has crypto allies, like Commissioner Hester Peirce, who has denounced the regulator’s actions against crypto-related entities. It is assumed that she will replace Gensler when Trump steps into the president’s role in January and follows through on his statements.
