Paul Grewal, Coinbase’s Chief Legal Officer (CLO), has called on the U.S. Securities Exchange Commission (SEC) to take faster action on crypto regulation for digital assets. Grewal’s recent social media post reflects widespread frustration with the SEC’s current regulatory stance.
This follows SEC’s series of enforcement actions against major players, including Coinbase and Kraken, for alleged securities law noncompliance. The regulator has accused various companies within the cryptocurrency industry of breaking securities rules designed to shield investors.
This conflict is attributable to the widening gap between the rapidly growing crypto sector and the regulatory bodies handling this constant conflict. The industry’s desire for a regulatory environment that allows growth and protects investors remains evident in Grewal’s call for clearer guidelines.
New Support Signals Shift in Crypto Regulation
Brian Armstrong, CEO of Coinbase, recently noted a notable shift in Congress, with pro-crypto sentiment skyrocketing. Armstrong revealed that we now have 205 pro-crypto candidates who sit in the U.S. House of Representatives, more than the 99 who oppose cryptocurrency operations.
This may be the first step towards a more favorable legislative environment for digital assets in the U.S. Also, they have emerged as pro-on crypto senators, creating momentum for potentially significant regulatory change.
Some market analysts offer this will be the path to clearer and more supportive crypto regulations. Crypto firms and investors see this support in Congress as a game-changing moment for a balanced regulatory landscape. That shift in representation raises the bar for federal regulators to appear more crypto-friendly.
Donald Trump’s Victory Sparks Optimism in the Crypto Industry
After Donald Trump won the recent U.S. elections, the industry has been stirring with optimism. Trump’s past criticism of the SEC’s crypto-regulation approach overseer Gary Gensler has sparked hope.
This commitment came during Trump’s campaign to create a presidential advisory council on cryptocurrency: a body of industry-friendly voices that would weigh in on this new vertical’s regulatory weight.
Republican-controlled Senate can call upon regulatory agencies to take a more transparent stand on digital assets. Lawmakers are also looking to open up certain blockchain benefits.
Others hope that Trump’s administration will encourage the SEC to drop ongoing suits against major crypto firms. Asset managers from Bitwise and Canary Capital have started exploring new avenues. They are expecting a friendly regulatory landscape that Trump promised to reshape.
It also continues a trend established by firms like Ripple, who want the new Congress to help advocate for clearer legislation. Regime clarity could bring great growth and innovation to the industry.
At the DC Blockchain Summit, Ripple head of U.S. policy, Lauren Belive, outlined industry leaders’ concern over lack of regulatory clarity.
This election cycle is becoming a defining moment for the crypto space to keep the US up to pace with the rest of the world in digital assets. A growing consensus is building that U.S. regulators should set rules that balance innovation and investor protections, helping foster growth.
