Coinbase’s legal chief weighs in on the legal tussle with SEC

• Coinbase’s Chief Legal Officer appeared in a talk show hosted by John Deaton.
• Grewal shared his take on the hostile stance of U.S. regulators like the SEC and its impact on the crypto industry in the country.

Paul Grewal, the Chief Legal Officer at U.S. based crypto exchange Coinbase, appeared in a talk show with popular crypto lawyer John Deaton.

Deaton is well known for his coverage of controversial lawsuits in the crypto industry, including the Securities and Exchange Commission’s (SEC) infamous lawsuit against Ripple over the alleged unregistered offering of XRP. 

Grewal highlights contradictory conduct from SEC

Speaking on the legal tussle with the SEC over its controversial handling and oversight of the crypto industry, Grewal highlighted the Wall Street regulator’s contradictory conduct in allowing the exchange to go public but then threatening to initiate enforcement action against the firm.

According to Grewal, the SEC’s decision to allow Coinbase to publicly list was in itself a seal of approval for a company. He added that the approval ensured that its business activities are legal and in the best interest of the public. 

Additionally, Grewal revealed that the legal team at Coinbase underwent a comprehensive review process to make sure that every asset offered on the exchange was in compliance with the requirements of federal regulators.

Despite the extensive efforts to comply with regulatory requirements, Coinbase faced problems from the SEC. The legal chief also expressed frustration due to lack of regulatory clarity from regulators in the United States. 

Paul Grewal said:

“This is no way to run a digital asset market. It’s certainly not the best that this country can do . I have a lot more faith in our government and in our country than that and yet here we are in 2023 all guessing as to whether even basic assets like ETH and XRP and a whole host of other assets are securities or not.”

The Coinbase lawyer also shared his take on the approach of regulators around the world towards crypto. He lauded the regulatory efforts undertaken by regulators in the United Arab Emirates, United Kingdom and Bermuda.

Coinbase recently launched a crypto derivatives exchange in Bermuda, citing its favorable regulatory landscape. Grewal warned that the hostile stance of regulators in the U.S. will drive crypto firms out of the country.