Coinbase urges removal of SEC crypto holding ban for staff

Coinbase has requested the United States Office of Government Ethics (OGE) to eliminate the rule that prohibits Securities and Exchange Commission (SEC) employees from holding cryptocurrencies. Paul Grewal, Coinbase’s Chief Legal Officer, submitted the request through official letters addressed to OGE Acting Director Jamieson Greer and SEC Chair Paul Atkins.

In the letters made public on platform X on April 25, Grewal argues that SEC staff must use cryptocurrencies to better understand how they function and to be able to propose effective regulations. "To regulate technology, you must first understand it. And to understand it, you must use it," Grewal stated.

According to Coinbase, the current prohibition hampers the SEC's Crypto Task Force activities and limits the agency’s ability to develop applicable policies for the digital asset sector. The proposal aims to enhance institutional expertise regarding cryptocurrencies and their proper regulation in the U.S. market.