Regulation
Coinbase CLO Pushes for Crypto Statute-Based Regulations Amid SEC Crackdown
Coinbase CLO Paul Grewal reiterated the need for cryptocurrency laws backed by statutes in response to the Securities and Exchange Commission’s aggressive enforcement actions.
Cryptocurrency advocates have consistently advocated for industry-friendly regulations, and there are some indications of limited progress in this regard. Grewal and Coinbase have consistently supported the cause on various social media platforms, Coiningape reported.
Coinbase CLO Wants Legislative Regulation
Academics have been scrutinizing the current market position due to the community push for cryptocurrency regulation. In a recent post on X (formerly Twitter), Coinbase’s Chief Legal Officer (CLO) responded to an educational article on the implications of the current situation by reiterating the regulations set forth by law.
Based on research, the court’s administrative case law promotes the idea that agencies such as the SEC should refrain from adopting legislation and instead focus on implementing measures.
“…concludes by using the example of the application of federal securities law to cryptocurrencies and the failure of the Securities and Exchange Commission to promulgate regulations defining the scope of the laws to demonstrate the effects that the agencies’ failure to issue regulations has on regulated industries.”
The current situation is lacking in cryptocurrency regulation, resulting in a flood of SEC lawsuits. As a result, market analysts have attributed the decline in market sentiment to the emigration of skilled professionals to nations with more transparent regulations. One example is companies that have designated Europe as their headquarters due to the significant impact of the Markets in Crypto Asset (MiCA) Act.
“In this line of work, you need to read academic pieces even if you don’t agree with everything. @tphillips makes a compelling case that enforcement alone doesn’t serve the public interest. We need regulation framed by statutes,” Coinbase CLO wrote.
Hope is ahead of us
Despite the prolonged duration of the situation, crypto enthusiasts are observing a subtle shift in the stance of US lawmakers. Many are highly praising the progress of FIT21 and the efforts to counter Gary Gensler’s SAB 121.
As a result, cryptocurrency has emerged as a hot topic in the election, signaling the need for potential legislation. The current election cycle has seen significant involvement from crypto Super PACs, which fund candidates who support free-market policies.