Catenaa, Wednesday, April 30, 2025-Coinbase Chief Legal Officer (CLO), Paul Grewal, has urged the US Office of Government Ethics (OGE) to lift its prohibition on SEC employees from holding or using cryptocurrencies. In a letter to the OGE, Grewal criticized the ban as “particularly egregious,” arguing that understanding the technology is essential for regulating it effectively.
Grewal emphasized that many crypto activities do not involve securities, making it vital for SEC staff to engage with digital assets directly. He noted that the potential conflicts of interest arising from employees holding crypto can be easily managed and should not obstruct their ability to develop sound regulatory proposals.
In his public statements, Grewal explained, “To regulate technology, you need to understand it. To understand technology, you need to use it.” His comments come amid ongoing discussions over regulatory clarity for digital financial technologies, a topic President Trump addressed earlier this year through an executive order calling for a report on crypto regulation.
Grewal also wrote to newly appointed SEC Chair Paul Atkins, urging that the current ban impedes the SEC’s ability to craft appropriate regulatory proposals. He criticized the 2022 SEC advisory that restricts employees from engaging with digital assets, describing it as “misguided and damaging to [crypto] regulatory progress.”
The Coinbase CLO’s letters reflect growing calls for regulatory bodies to evolve alongside rapidly advancing technology and to ensure crypto regulations are based on thorough, first-hand understanding.
