Coinbase General Counsel Uses U.S. Election Results to Respond to Unfavorable SEC Crypto Regulations

Coinbase Chief Legal Officer Paul Grewal cited the U.S. election results to discuss the U.S. Securities and Exchange Commission’s (SEC) negative attitude toward cryptocurrency regulation. Grewal, chief legal officer at San Francisco-based exchange Coinbase, mentioned that American voters have expressed a strong desire for change on a number of issues, including cryptocurrency regulation.

He encouraged the SEC to change its current approach to cryptocurrency regulation and take a more favorable stance. Specifically, Grewal called on the SEC to engage directly with crypto-related companies rather than taking them to court. Additionally, Grewal suggested that regulators immediately initiate rulemaking that would provide clear regulatory norms for the crypto industry.

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Over 200 Pro-Crypto Candidates Elected Grewal’s comments came as a reaction to the election results, with voters wanting a change to the status quo. Prior to the election, crypto enthusiasts supported only pro-crypto candidates for various offices, including the presidency.

Earlier today, The Crypto Basic reported that approximately 238 pro-crypto candidates are leading the charge in the U.S. congressional elections. Of these, 224 were elected to the House of Representatives and 14 will enter the Senate. For many crypto enthusiasts, the most exciting part of the 2024 U.S. election results is the emergence of Donald Trump as president-elect.

Trump’s support for the industry is well known, as he has consistently revealed how he plans to make the United States the “crypto capital of the world.” One of his campaign promises regarding cryptocurrency was to fire SEC Chairman Gary Gensler on his first day in office.

SEC Operations Under GenslerMany industry stakeholders consider Gensler to be a major threat to cryptocurrency. Under his leadership, the SEC has been active in pursuing multiple enforcement actions against cryptocurrency companies.

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Coinbase was one of the victims of SEC enforcement actions under Gensler. Last year, the SEC charged Coinbase with operating as an unregistered exchange in violation of federal securities laws.

A federal judge in March rejected the exchange's request for an early dismissal of the SEC's charges. With more than 200 pro-crypto candidates sworn in, plus a possible new SEC management, the proceedings could see significant changes in the coming weeks.

Currently, there are rumors that the new SEC management may review and possibly cancel most lawsuits against the industry. Whether this will become a reality remains to be seen.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.