Coinbase CLO Paul Grewal has restated the need for statute-backed crypto regulations amid the enforcement onslaught by the Securities and Exchange Commission. Crypto stakeholders continue their push for pro-industry rules this year with slight signs of progress. Grewal and Coinbase have remained vocal in the same cause on social media spaces.
Coinbase CLO Wants Legislative Rulemaking
The push by the community for crypto rules has seen academics analyze the current market position. In a recent post on X (formerly Twitter), the Coinbase CLO replied to an educational piece on the effects of the status quo by restating legally made rules. According to the research, the court’s administrative jurisprudence encourages agencies like the SEC to abandon creating legislative rules and rather bring enforcement actions.
“…it concludes by using the example of federal securities law application to crypto assets and the Securities and Exchange Commission’s inability to promulgate regulations defining the laws’ scope to demonstrate the effects that agencies’ inability to enact regulations places on regulated industries.”
This is the status quo as the lacks the crypto regulation leading to a proliferation of lawsuits by the SEC. As a result, market commentators have pointed to low sentiments coupled with expert migration to countries with clearer rules. An example is firms that flagged Europe citing headquarters because of the landmark Markets in Crypto Asset (
MiCA) regulation.
“In this line of work, you gotta read academic pieces even if you don’t agree with all of them. @tphillips makes a compelling case that enforcement alone doesn’t serve the public interest. We need rulemaking framed by statutes,” Coinbase CLO wrote.
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Hope Lies Ahead
Despite the scenario that has dragged on for years, crypto enthusiasts say a slight change is seen from the stance of United States lawmakers. This year, the progress of FIT21 and attempts made to squash Gary Gensler’s SAB 121 are lauded in many quarters.
As a result, crypto has become a mainstream election issue pointing to potential regulations. This election cycle has recorded massive activity from crypto Super PACs to sponsor pro-market candidates.
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