Originally published on: November 06, 2024
In the wake of Donald Trump’s re-election as president, Paul Grewal, the chief legal officer at Coinbase, is urging the United States Securities and Exchange Commission (SEC) to rethink its stance on cryptocurrency regulation.
Grewal believes that the SEC should pivot towards a more collaborative and innovative regulatory framework rather than relying solely on litigation. This sentiment reflects the growing frustration within the crypto community towards the SEC’s enforcement actions.
With Trump’s promise to oust SEC Chair Gary Gensler, there is anticipation of a potential shakeup within the SEC that could have far-reaching implications, not just for the crypto industry in the US.
Following Trump’s victory, he pledged to focus on uniting the nation and revitalizing the country. During his campaign, Trump vowed to remove Gensler on his first day in office to bring an end to what he described as the anti-crypto stance of the previous administration.
Under Gensler’s leadership, the SEC has taken legal action against prominent crypto players like Coinbase and Uniswap. The lack of clear regulatory guidelines has left many crypto companies grappling with compliance issues, which Grewal believes can be addressed through proper rulemaking processes.
As speculation mounts about Gensler’s potential successors, individuals like SEC Commissioner Hester Peirce, known for her pro-crypto views, are being considered. Peirce, often nicknamed “Crypto Mom” for her advocacy, has criticized the SEC’s aggressive enforcement approach and called for regulatory clarity to benefit the industry and the US’s global position in the digital finance landscape.
Despite the push for regulatory clarity, Coinbase has faced scrutiny over allegations of high listing fees for tokens. Justin Sun, founder of Tron, claimed that Coinbase requested $300 million to list Tron’s token, while Andre Cronje, founder of Fantom Network, alleged sky-high listing fees from Coinbase as well.
These claims contradict Coinbase CEO Brian Armstrong’s assertion that asset listings on the platform are free, raising questions about transparency and fairness in the crypto industry.
For in-depth analysis of Trump’s election victory and its impact on the crypto market, check out today’s Rise’n’Crypto podcast from Cointelegraph.
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