Coinbase CLO Paul Grewal Reiterates the Necessity for Cryptocurrency Laws Backed by Statutes

Cryptocurrency advocates persistently advocate for regulations that are favorable to the industry, and there are some indications of limited advancement in this regard.

Coinbase Chief Legal Officer (CLO) Paul Grewal has highlighted the importance of cryptocurrency laws backed by statutes, following the Securities and Exchange Commission's (SEC) aggressive enforcement actions.

Crypto advocates have been pushing for regulations that are favorable to the industry, and there have been some signs of limited progress in this regard. Grewal and Coinbase have been active in advancing this cause on various social media platforms, as reported by Coingape.

Coinbase CLO Advocates for Legislative Rulemaking

The absence of clear crypto regulations has been a subject of study by academics due to the community's push for it. In a recent post on X (formerly Twitter), the Coinbase CLO shared an informative article about the implications of the current scenario, emphasizing the need for legally established regulations.

The study argues that the administrative jurisprudence of the courts favors agencies like the SEC adopting enforcement measures rather than legislative rules.

“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.”

In the absence of crypto regulations, various lawsuits have been filed by the SEC. As a result, market analysts have pointed to the emigration of skilled professionals to countries with clearer regulations.

For instance, some companies have shifted their headquarters to Europe due to the substantial impact of the Markets in Crypto Assets (MiCA) legislation.

“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,” wrote the Coinbase CLO.

Hope on the Horizon

Despite the prolonged nature of the scenario, crypto enthusiasts observe a subtle shift in the stance of United States lawmakers. Many are applauding the efforts of FIT21 and the counteractions against Gary Gensler's SAB 121.

As a result, crypto has become a major talking point in the elections, highlighting the need for potential legislation. This election cycle has seen heavy involvement from crypto Super PACs, funding candidates who support free-market policies.

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