Coinbase just wants the SEC to follow the rule of law

Episode 12 of Season 5 of The Scoop was recorded remotely with The Block's Frank Chaparro and Coinbase Chief Legal Officer Paul Grewal.

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There are crypto projects that are securities, but you won’t find them on Coinbase, Chief Legal Officer Paul Grewal said.

U.S. regulators have been cracking down on digital assets. Gewal says Coinbase is just looking for consistency.

“We’re not saying we don’t want to be regulated. We’re just saying that regulation all ought to occur under the rule of law that is in a manner that’s consistent with what Congress wrote,” he added.

One particular inconsistency Grewal points out is how the Securities and Exchange Commission’s request for crypto exchanges to register as national securities exchanges clashes with Coinbase's explicit policy of not listing securities:

“For there to be no distinction drawn between the products that are securities and the products that aren’t, is effectively saying that we would have to agree that the rule of law doesn’t matter and that even though Congress limited the SEC’s jurisdiction to securities and securities alone, we should come in and register anyway,” Grewal said. 

During this episode, Chaparro and Grewal also discuss:

  • How Coinbase's staking product differs from Kraken's
  • Why it's in the U.S. government's interest to protect stablecoins
  • What it means to receive a Wells notice

This episode is brought to you by our sponsors Circle, Railgun, Flare Network

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