Paul Grewal, Coinbase’s chief authorized officer, was knowledgeable of the U.S. Securities and Trade Fee’s (SEC) lawsuit towards his firm lower than an hour earlier than he was set to testify on crypto laws earlier than the Home Committee on Agriculture.
Grewal says in a brand new interview with Bankless that the timing of the SEC’s announcement this week is “curious.”
“The actual fact of the matter is, I realized about this criticism, I don’t know, 45 minutes earlier than I used to be scheduled to stroll over to Capitol Hill and testify earlier than the Home Agriculture Committee on a draft invoice that was launched final Friday. So yeah, it’s attention-grabbing, curious, decide your phrase, that the SEC selected this morning of all days to file the lawsuit.”
The SEC sued Coinbase on Tuesday, alleging the highest US crypto trade operated as an unregistered securities trade, dealer, and clearing company.
Later that day, Grewal testified on a dialogue draft of a digital asset framework invoice that’s being reviewed by the Home of Representatives.
Says the Coinbase chief authorized officer,
“The invoice is definitely fairly attention-grabbing and fairly essential. It’s going to present for the very first time an actual market construction for digital property, together with each digital asset commodities and digital asset securities. It’s going to present a pathway for registration, severe oversight, actual safety for customers and traders — plenty of the issues that we now have been clamoring for – for a lot of months, if not a few years, within the trade.”
Coinbase filed a movement in court docket in April to compel the SEC to answer an earlier petition from the corporate requesting steerage for the digital asset trade.
This week, the U.S. Courtroom of Appeals for the Third Circuit issued an order requiring the regulator to answer the petition inside seven days. The order cited the SEC’s just lately introduced lawsuit towards the trade.
Explains Grewal,
“We proceed to consider that the SEC couldn’t be continuing with litigation towards our trade, just like the case filed towards us in the present day, if the SEC had not already determined to disclaim our petition for rulemaking.
We proceed to consider that guidelines of the street, from laws or rulemaking or each, should come earlier than enforcement actions. That’s the reason we petitioned the SEC for rulemaking practically a yr in the past within the first place.
If the SEC’s reply to our petition for rulemaking is ‘no,’ then they’re required by legislation to inform us, as a result of we now have the authorized proper to query that ‘no’ in court docket. And there are severe inquiries to be requested.”
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