Coinbase is calling on the U.S. Securities and Exchange Commission (SEC) to lift its prohibition on employees owning cryptocurrencies, arguing that the restriction hampers the agency’s ability to effectively regulate the digital asset industry.
In letters addressed to SEC Chair Paul Atkins and Office of Government Ethics Acting Director Jamieson Greer, Coinbase Chief Legal Officer Paul Grewal contends that allowing SEC staff to hold cryptocurrencies would enhance their understanding of the technology and market dynamics, thereby improving regulatory oversight.
Grewal emphasized that firsthand experience with digital assets is crucial for regulators tasked with overseeing a rapidly evolving sector. He noted that the current ban may impede the SEC’s Crypto Task Force from fully grasping the nuances of the industry, potentially leading to less informed policy decisions.
The appeal comes amid ongoing tensions between Coinbase and the SEC over the regulatory framework governing cryptocurrencies. Coinbase has previously challenged the SEC’s approach, advocating for clearer guidelines and more tailored regulations to accommodate the unique aspects of digital assets.
As the debate over crypto regulation continues, Coinbase’s latest request highlights the broader conversation about how regulators can effectively engage with emerging technologies while maintaining ethical standards and avoiding conflicts of interest.
