Coinbase Top Lawyer Reacts as SEC Delivers Crucial Statement for Markets

Coinbase’s Chief Legal Officer, Paul Grewal, has reacted to recent remarks made by SEC Commissioner Hester M. Peirce at the “SEC Speaks” event.

The annual two-day “SEC Speaks” event began Tuesday, providing clues into the Securities and Exchange Commission’s priorities for the year.

“SEC Speaks” is a forum where the SEC provides guidance to the legal community on rules, regulations, enforcement actions and lawsuits. The event allows the SEC to get its main messages across, and this year’s key subject is “disclosure.”

SEC Chair Gary Gensler, commissioners and other key personnel are giving remarks during the event.

“Crypto Mom” Heister Peirce, in her remarks at “SEC Speaks,” focuses on the key issue of the decline in genuine commission and staff engagement with the public. She adds that the commission — not the staff or market participants — is to blame.

According to Peirce, this manifests itself in the way rules are developed these days: very broad proposals and little SEC engagement in implementation discussions. She went on to say that productive interactions with the SEC are becoming increasingly rare.

Coinbase CLO Paul Grewal responded in a tweet, supporting Peirce’s statements: “There’s lots to agree with in Commissioner Hester Peirce’s remarks this week at SEC Speaks.”

There’s lots to agree with in Commissioner @HesterPeirce’s remarks this week at SEC Speaks. But one suggestion struck me as especially creative and unobjectionable to anyone not focused on a political agenda at the SEC: an advisory committee made up of chief compliance…

— paulgrewal.eth (@iampaulgrewal) April 3, 2024

The Coinbase cryptocurrency exchange had petitioned for clear rules on digital assets in the past, which the SEC rejected last December.

Coinbase is now requesting that the federal circuit court overturn the SEC’s earlier denial of its petition and require the SEC to begin new crypto rulemaking, or at least clearly explain its stance.

In the most recent legal development, U.S. District Judge Katherine Polk Failla ruled last week that the U.S. Securities and Exchange Commission’s action against Coinbase can proceed.

In that order, the judge also agreed to dismiss the SEC’s claim in the case that Coinbase acted as an unregistered broker by making its Wallet program available to users.

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