SEC’s Crypto Ambiguity Sparks Outrage: Coinbase’s Legal Chief Slams SEC

• Coinbase’s Chief Legal Officer Paul Grewal has voiced concerns over the US Securities and Exchange Commission’s (SEC) refusal to provide guidance for cryptocurrency companies looking to adhere to regulations.
• XRP advocate and lawyer John Deaton echoed Grewal’s sentiments, criticizing the SEC for discouraging ethical behavior and exploiting voluntary disclosures by crypto enterprises.
• Grewal believes that seeking legal advice in order to comply with the law is not proof of criminal intent, but rather a preventive measure.

Coinbase’s Legal Chief Slams SEC’s Lack of Guidance

Coinbase’s Chief Legal Officer, Paul Grewal, has expressed his disappointment with the US Securities and Exchange Commission’s (SEC) refusal to provide guidance for cryptocurrency companies looking to adhere to regulatory requirements. XRP advocate and lawyer John Deaton agreed with Grewal’s viewpoint, criticizing the SEC for its stance on innovation. Deaton argued that the SEC is exploiting voluntary disclosures by crypto enterprises in order to take enforcement actions against them.

Gensler’s Stance on Crypto Regulation

Gensler’s SEC has been widely criticized for its interpretation of seeking advice on lawful token sales as a potential violation of the Securities Act Section 5. This stance has discouraged responsible conduct from crypto companies and discourages firms from seeking legal advice in order to comply with regulations.

Preventing Criminal Intent

Grewal believes that seeking legal advice in order to comply with the law is not proof of criminal intent, but rather a preventive measure taken by companies trying to remain compliant with regulations. He argues that such consultations often serve as a preventive measure, countering any notion of criminal intent.

Unfavorable Bias Against Crypto Sector

Deaton emphasized that Gensler’s SEC has exhibited an unfavorable bias against the crypto sector by interpreting requests for legal advice as evidence of wrongdoing rather than an attempt at following regulations correctly. He also noted that this attitude has resulted in transparent disclosure of partnerships or token sales being used against companies as evidence of shared interests among token holders when there was none present.

Conclusion

The debate surrounding lack of guidance from the US Securities and Exchange Commission continues among members within the crypto community due their stance towards providing counsel on how best cryptocurrency companies can remain compliant with regulatory requirements while encouraging innovation within industry standards.