Coinbase CLO Raises Concerns About SEC’s Stance on Crypto Compliance
Coinbase chief legal officer Paul Grewal has expressed concerns about the US Securities and Exchange Commission (SEC) denying crypto companies the ability to seek advice on complying with the law. Grewal argues that seeking advice should not be seen as proof of an intent to break the law, but rather a way to ensure compliance. XRP lawyer John Deaton agrees with Grewal and criticizes the SEC for using voluntary disclosures against crypto firms in enforcement actions. He also mentions that seeking cooperation and compliance with the SEC has become almost impossible, as the regulator uses it as evidence against crypto companies.
Main Points:
- Grewal questions the logic behind the SEC’s denial of advice-seeking from crypto companies.
- Deaton agrees with Grewal and criticizes the SEC’s negative view of the crypto industry.
- The SEC uses voluntary disclosures against crypto firms in enforcement actions.
- Crypto companies like Ripple, LBRY, Dragonchain, and Coinbase have had negative experiences with the SEC.
- Lawyers recommend clients not to cooperate with the SEC due to its treatment of crypto companies.
Should Crypto Companies Remain Transparent?
Despite many crypto companies advocating for transparency to build trust, the recent actions of the SEC against the industry have posed a challenge. The SEC is appealing against a ruling that programmatic sales of XRP are not securities, which has been criticized by the industry. The lack of cooperation and support from the SEC has raised concerns among crypto companies.
Hot Take:
The SEC’s stance on denying advice-seeking from crypto companies and using voluntary disclosures against them in enforcement actions hinders compliance efforts and creates an environment of mistrust. Crypto companies should continue to advocate for transparency, but also need regulatory support and cooperation to ensure a fair and thriving industry.
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