Coinbase CLO challenges U.S. GAO’s concerns on crypto evasion of sanctions
The Chief Legal Officer of Coinbase, Paul Grewal, strongly disagrees with a recent report by the U.S. Government Accountability Office (GAO) that raised concerns about the use of cryptocurrencies to evade U.S. economic sanctions. Grewal criticized the report for lacking thorough analysis and comparative studies. He also accused the GAO of targeting the crypto industry unfairly, which diligently complies with legal frameworks.
Grewal urged readers to examine the report’s content and pointed out that buried within the clickbait links were admissions that digital assets are not an efficient means to evade sanctions. He expressed concerns about taxpayers’ money being used for such “shoddy work” by the government.
These remarks come as Coinbase is in a court battle with the U.S. Securities and Exchange Commission (SEC) over allegations of functioning as an unregistered national securities exchange.
Highlights from the U.S. GAO report
The GAO report revealed instances where states facing U.S. sanctions strategically used cryptocurrencies to conceal transactions, undermining the impact of economic restrictions. It also mentioned cases where individuals were charged for using cryptocurrency to bypass sanctions related to obtaining Venezuelan oil and U.S. military technology.
However, the report acknowledged the limitations of using crypto for evading sanctions and highlighted that federal agencies and private sector entities can trace transactions on public blockchains to counter illicit activities.
Hot Take: Coinbase CLO challenges assumptions in U.S. GAO report on crypto evasion of sanctions
The Coinbase Chief Legal Officer, Paul Grewal, has strongly criticized a recent report by the U.S. Government Accountability Office (GAO) that raised concerns about cryptocurrencies being used to evade economic sanctions. Grewal questioned the GAO’s analysis and accused them of unfairly targeting the crypto industry. He emphasized that buried within the report were admissions that digital assets are not an efficient means to evade sanctions, suggesting a lack of certainty in the GAO’s stance. Additionally, Grewal expressed concerns about taxpayers’ money being used for what he called “shoddy work” by the government. These statements come amidst Coinbase’s ongoing legal battle with the SEC.
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