Coinbase has officially asked American regulators to raise the ban to prevent Securities and Exchange Commission (SEC) staff from buying, selling or using cryptocurrencies that are not titles.
In letters dated April 22, the Coinbase Leader-Chief Director Paul Grewal wrote to the President of the SEC, Paul Atkins and the US Office for Government Ethics and argued that current policy is hindering the capacity of regulators to effectively supervise the cryptocurrency industry.
Current policy undermines effective regulations, maintains Coinbase
In letters, Grewal stresses that the prohibition arrives at a particularly problematic moment. President Trump ordered the SEC and other agencies to submit recommendations for regulatory proposals to advance American digital financial leadership within 180 days via the decree.
The COCO Coinbase notes that almost half of this period has already passed, but staff members cannot still use the technology they are responsible for regulating.
Grewal argues that understanding technology requires using it and has written that the current situation obstructs the capacity of the dry crypto working group to help open the way for regulatory clarity.
The company calls on the Office of Government Ethics to cancel and update the Legal Council 22-04. This prohibits commission personnel from buying, selling or otherwise cryptographic assets.
The letter to the president of the Sec Atkins suggests practical solutions. An option is to derogate from members of the crypto working group and other staff members working actively on cryptocurrency issues. According to Grewal, this approach is in accordance with the measures already taken in “proportional consulting situations”.
It would also allow the staff of the Commission directly responsible for the implementation of the regulation of cryptocurrencies to understand and correctly assess the underlying technology.
Coinbase offers a more nuanced approach to conflicts of potential interests. The exchange suggested that dry personnel could have cryptocurrencies under certain conditions. Grewal maintains that the prohibition of current coverage is particularly problematic since most cryptographic assets do not imply titles.
As an alternative, Coinbase suggests that the Commission could specify that certain assets of cryptocurrency would have no direct and predictable effect on the value of these assets.
Grewal notes that providing such relief would align with the views expressed by the office of the Inspector General. He said that the Commission’s ability to remain an effective regulator needs continuous monitoring of the market environment and an appropriate adaptation of expertise, rules, regulations and monitoring tools.
