Regulation
Coinbase CLO Calls for Law-Based Cryptocurrency Regulation Amid SEC Crackdown
Coinbase CLO Paul Grewal reiterated the need for statutorily backed cryptocurrency laws in response to aggressive enforcement actions by the Securities and Exchange Commission.
Cryptocurrency advocates have consistently advocated for industry-friendly regulation, and there are signs that progress in this regard has been limited. Grewal and Coinbase have consistently supported the cause on various social media platforms, Coingape reported.
Coinbase CLO Wants Legislative Regulation
Academics have examined the current market situation due to the community’s desire to regulate cryptocurrencies. In a recent post on X (formerly Twitter), Coinbase’s Chief Legal Officer (CLO) responded to an educational article about the implications of the current situation by reiterating legally established regulations.
According to research, the administrative jurisprudence of the court promotes the idea that bodies such as SECOND should refrain from adopting legislative rules and instead focus on implementing measures.
“…he concludes by using the example of the application of federal securities law to crypto assets and the failure of the Securities and Exchange Commission to promulgate regulations defining the scope of the laws to demonstrate the effects that the failure of agencies to promulgate regulations has on regulated industries.”
The current situation is characterized by a lack of regulation of cryptocurrencies, which has led to a plethora of lawsuits from the SEC. Therefore, market analysts have attributed the decline in market sentiment to the emigration of skilled professionals to countries with more transparent regulations. One example is companies that have indicated Europe as their headquarters due to the significant impact of the Markets in Crypto Assets Act (MiCA).
“In this area, you have to read the academic papers even if you don’t agree with all of them. @tphillips makes a compelling case that enforcement alone doesn’t serve the public interest. We need regulation backed by laws,” Coinbase CLO wrote.
Hope is there
Despite the prolonged duration of the situation, cryptocurrency aficionados are observing a subtle shift in the stance of US lawmakers. Many are welcoming the progress of FIT21 and its efforts to counter Gary Gensler’s SAB 121.
As a result, cryptocurrency has become a major talking point in elections, indicating the need for possible legislation. The current election cycle has seen significant involvement of crypto Super PACs, funding candidates who support free-market policies.