Coinbase Urges US Office of Government Ethics to Remove SEC Crypto Holding Ban
Coinbase has called on the US Office of Government Ethics (OGE) to remove a rule that prohibits Securities and Exchange Commission (SEC) staff from holding cryptocurrency. The company’s chief legal officer, Paul Grewal, argued in open letters to OGE acting director Jamieson Greer and newly sworn-in SEC Chair Paul Atkins that SEC staff need to use cryptocurrency to better understand how it works and the best way to regulate it.
“To regulate technology, you need to understand it. To understand technology, you need to use it,” Grewal said in the letters, which he shared on X on April 25. This statement encapsulates Coinbase’s argument that hands-on experience with cryptocurrency is essential for effective regulation.
The current ban on SEC staff holding cryptocurrency is seen as a measure to prevent conflicts of interest. However, Coinbase believes that by allowing SEC staff to engage with cryptocurrency, they can gain a deeper understanding of the technology and its implications, ultimately leading to more informed regulatory decisions.
The debate surrounding the regulation of cryptocurrency continues to evolve, with various stakeholders advocating for clearer guidelines. Coinbase’s push to allow SEC staff to hold cryptocurrency is part of this broader discussion, highlighting the need for regulators to stay informed about the rapidly changing landscape of digital assets.
As the cryptocurrency market continues to grow and mature, the importance of effective regulation becomes increasingly apparent. By engaging with the technology, regulators can better understand its potential benefits and risks, ultimately creating a more robust and informed regulatory framework.
