Coinbase, Request To SEC To Allow Employee Cryptocurrency Trading

Paul Grewal, Coinbase's Chief Legal Officer, requesting SEC internal employees' cryptocurrency trading permission (Source: @iampaulgrewal, X)

The largest cryptocurrency exchange in the US, Coinbase, has officially requested the new US SEC Chairman Paul Atkins to allow SEC internal employees to hold cryptocurrencies.

Paul Grewal, Coinbase's Chief Legal Officer, disclosed a letter sent to Chairman Paul Atkins on his X account on the 27th. Grewal emphasized in the letter that "To regulate technology, one must understand technology," and stressed that SEC employees need to hold and use cryptocurrencies directly to create a feasible regulatory framework. He requested a revision of the relevant internal rules within 90 days.

Currently, under regulations effective from July 4, 2022, SEC employees are prohibited from trading or holding cryptocurrencies or stablecoins. This regulation excludes cryptocurrencies from the exception list because they do not fall under "publicly traded securities" like stocks.

Grewal pointed out in the letter that the SEC could take measures on its own. For instance, he suggested granting temporary immunity to employees involved in cryptocurrency regulatory work, including the Cryptocurrency Task Force (TF) team. He stated, "This will be a measure consistent with other cases already applied in similar situations."

In addition to Chairman Paul Atkins, Paul Grewal separately conveyed a similar request to SEC Commissioner Hester Peirce. He pointed out that the inability to directly handle cryptocurrencies hinders the SEC Cryptocurrency Task Force's regulatory framework development.

Paul Atkins, appointed directly by President Trump as SEC Chairman, is considered a representative pro-cryptocurrency figure in US politics. In past congressional hearings, he strongly criticized the SEC operation methods of former Chairman Gary Gensler and argued that regulatory bodies should stop oppressing the industry.