Coinbase Pushes to Let SEC Employees Hold Crypto

Crypto News Regulation

Coinbase Calls for Rule Change: Let SEC Employees Hold Crypto

Written by Aaron S.,

Editor-In-Chief

Last Updated: April 28, 2025

Key Takeaways

Coinbase asked the OGE to end a rule blocking SEC staff from owning crypto, saying experience is key to creating effective regulations;
Paul Grewal argued that the SEC’s Crypto Task Force needs hands-on use of digital assets to properly develop crypto policies;
Grewal suggested issuing waivers to SEC staff working on crypto matters so they can legally test and evaluate digital assets.

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Coinbase Calls for Rule Change: Let SEC Employees Hold Crypto

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Coinbase $2.41B is asking the US Office of Government Ethics (OGE) to lift a rule that stops staff at the Securities and Exchange Commission (SEC) from owning or using cryptocurrency.

Paul Grewal, Coinbase’s chief legal officer, requested two letters dated April 25, addressed to OGE acting director Jamieson Greer and new SEC Chair Paul Atkins.

In his letter to Greer, Grewal said, "To regulate technology, you need to understand it. To understand technology, you need to use it". He also explained that allowing SEC employees to hold crypto would help them develop the knowledge required to design proper regulations for the digital asset industry.

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The ban Grewal is challenging comes from Legal Advisory 22-04, issued by the OGE on July 4, 2022, which blocks SEC staff from buying, selling, or using cryptocurrencies and stablecoins.

In a second letter to Atkins and SEC Commissioner Hester Peirce, Grewal made a similar case but focused more specifically on the SEC’s Crypto Task Force. He said the team assigned to work on crypto policy cannot properly do its job without firsthand experience using digital assets.

Although only the OGE can officially remove the restriction, Grewal suggested, "Issuing waivers to crypto task force members and other staff actively working on task force matters would be consistent with measures already taken in commensurate advisory situations".

A waiver would allow those staff members to test and evaluate digital assets without breaking any ethics rules.

Meanwhile, the European Data Protection Board (EDPB) has recently released draft guidelines to align the use of blockchain data with EU privacy laws. What do the guidelines entail? Read the full story.