• Coinbase’s Chief Legal Officer Paul Grewal has voiced concerns over the US Securities and Exchange Commission’s (SEC) refusal to guide cryptocurrency companies in adhering to regulatory requirements.
• XRP advocate and lawyer John Deaton has agreed with Grewal’s viewpoint, criticizing the SEC for exploiting voluntary disclosures by crypto enterprises to fuel enforcement actions against them.
• The SEC’s interpretation of seeking advice on lawful token sales has been controversial, as it interprets this action as a potential violation of the Securities Act’s Section 5.
Coinbase’s Legal Chief Slams SEC
Coinbase’s Chief Legal Officer, Paul Grewal, has voiced concerns regarding the US Securities and Exchange Commission’s (SEC) refusal to guide cryptocurrency companies seeking to adhere to regulatory requirements. Struggles for SEC access have unveiled the evolving landscape within the industry.
XRP Advocate Agrees with Grewal
XRP advocate and lawyer John Deaton has agreed with Grewal’s viewpoint, criticizing the SEC for what he perceives as discouraging ethical behavior and exploiting voluntary disclosures by crypto enterprises to fuel enforcement actions against them.
Seeking Advice Interpreted as Violation?
The SEC’s interpretation of seeking advice on lawful token sales has been controversial, as it interprets this action as a potential violation of the Securities Act’s Section 5. According to Deaton, this tactic has allowed the SEC to insinuate that there is a shared interest among token holders which could lead to further legal implications.
Discouraging Responsible Conduct?
Grewal expressed his bewilderment that seeking legal guidance implies an intention to infringe upon law when it could be used instead as a preventive measure in order not break any laws. Pro-XRP lawyer John Deaton echoed Grewal’s sentiments emphasizing that Gary Gensler’s led SEC exhibits an unfavorable bias towards crypto sector discouraging responsible conduct.
Impact on Innovation
This stance from the US government agency has raised eyebrows within the crypto community and prompted debates about its impact on innovation. The hesitance from authorities such as the SEC in offering guidance only further fuels doubts about how much support can be expected from regulators in fostering a successful financial technology industry based around digital assets such as cryptocurrencies or blockchain-based services