Coinbase Pushes to Let SEC Staff Hold Crypto – Guess Who’s Not Happy About It?

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So, guess what? Coinbase, the big bad wolf of crypto, is throwing a fit – and we mean that in the most legalese way possible. They want the US Office of Government Ethics to just toss out the rule that forbids Securities and Exchange Commission (SEC) staff from holding crypto. Who knew government employees were so restricted? Maybe it’s time for them to get a little taste of the future, huh?

According to Coinbase’s legal guru, Paul Grewal, SEC staff need to *actually use* crypto to *get* crypto. I mean, come on! How else are they supposed to regulate something if they can’t even touch it? Imagine asking a chef to cook without ever tasting their own dish. Ridiculous! And yes, Grewal wrote all this in a letter to the acting OGE director, Jamieson Greer, and the newly appointed SEC boss, Paul Atkins. Who says you can’t mix politics and crypto? 🍔💰

“To regulate technology, you need to understand it. To understand technology, you need to use it,” Grewal said. Wow, sounds like a slogan for a tech-savvy superhero movie, right?

But the plot thickens! Grewal is arguing that letting the SEC staff hold crypto is absolutely crucial to understanding the whole thing and coming up with sensible rules for digital securities. Makes sense, doesn’t it? A doctor should know how to use a stethoscope, right? 🎧💸

Now, here’s the kicker: The OGE threw a big ol’ wrench into this idea back in July 2022 with a legal advisory (Legal Advisory 22-04, if you’re keeping score) that forbids SEC staff from buying, selling, or even *thinking* about crypto or stablecoins. Why? Because they don’t count as “publicly traded securities” – which is like saying you can’t ride a bike unless it’s been officially approved by the government. 🙄

SEC Needs Waivers, Like, Yesterday

But wait, there’s more! Grewal reminded us that former President Donald Trump told agencies like the SEC to submit crypto regulation recommendations within 90 days. Sounds like a lot of pressure, right? Well, SEC staff still can’t get their hands on crypto to understand what they’re *actually* supposed to be regulating. Oh, the irony! 🚨

He took the opportunity to send another letter to SEC big shots like Hester Peirce, a crypto-friendly commissioner. Grewal’s message? Not being able to hold crypto is a major roadblock for the Crypto Task Force that’s supposed to create a regulatory framework. Talk about a speed bump in the fast lane! 🏎️💨

So, what’s the solution? Well, Grewal’s got an idea: waivers. Yes, that magical word that lets certain people get special treatment. He suggests waiving the rule for SEC staff working on crypto regulations so they can actually *use* crypto and “evaluate the underlying digital asset technology.” Isn’t that the point? 🧐

Remember Gary Gensler, the former SEC Chair? Yeah, he was the guy who acted like crypto was a ticking time bomb. But after his resignation in January 2023, the SEC made a dramatic u-turn, dropping lawsuits against crypto companies, including Coinbase. Imagine that! Maybe someone finally realized that having a crypto task force that can’t use crypto is a bit, well, *silly*?

So there you have it: Coinbase is pushing for crypto freedom for the SEC. Will they get it? Who knows, but the SEC’s next move could either shake up the world of regulation or send everyone back to the drawing board. Stay tuned! 🚀

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2025-04-28 09:36