Coinbase has asked the US government ethics office to remove a rule for the ban on securities and exchange commission employees from crypto.
The employees of the SEC should use crypto to higher understand how it really works and the most effective technique to regulate it, Coinbase Chief Legal Officer Paul Grewal argued in open letters, which he divided into the incumbent director of Oge, Jamieson Greer, and the newly united SEC chairman Paul Atkins, whom he divided into X on April 25.
“To regulate the technology, you will have to grasp it. To understand the technology, you will have to make use of it,” said Grewal within the letter to Greer.
“The permission of the Commission's employees to maintain crypto is significant for them to develop the knowledge that’s vital to suggest and adopt practical regulatory framework for digital securities activities,” he added.
Source: Paul Grewal
Legal advice 22-04, issued on July 4, 2022, prohibits SEC employees, crypto and stable coins to sell or use in every other way, since they aren’t “listed securities” and, in contrast to shares, don’t qualify for an exception.
SEC needs exceptional regulations for workers
Grewal said the US President Donald Trump instructed the SEC and other agencies to make recommendations for crypto regulations which can be due in around 90 days, and SEC “The employees can still use the technology to which they make recommendations.”
In his letter to Atkins and SEC Commissioner Hester Peirce, he repeated the same feeling and argued that the lack to maintain crypto was a roadblock for the agency's crypto -act for the creation of a regulatory framework.
While the recommendation is canceled, the SEC should take its own measures, said Grewal.
“For example, the output of exemptions to members of the Krypto -Sksk Force and other employees who’re actively working on questions of the duty force would match measures which have already been taken in reasonable consulting situations,” he said.
Grewal added that the SEC worker of the Crypto -Task Force, which can be chargeable for the creation of crypto regulations, can be chargeable for creating crypto and “evaluating the underlying digital asset technology”.
Former SEC chairman Gary Gensler, who took office in 2021, was known for his hard attitude towards cryptor regulation. He resigned on January 20 after led an aggressive regulatory attitude towards Crypto and increased the 100 regulatory measures against firms.
After Gensler's exit, the SEC decided from a series of lawsuits against crypto firms, including Coinbase, on February 27 and in a recently released walkback on April 24, to place its enforcement against the Blockchain company Dragonchain.
