Coinbase Chief Legal Officer Pushes for Regulatory Shift After Trump’s Election Victory
Trump’s win sparks call for SEC reform
Paul Grewal, chief legal officer at Coinbase, has called on the United States Securities and Exchange Commission (SEC) to revise its approach to cryptocurrency regulation after Donald Trump’s re-election as president. Grewal emphasized the need for a framework that encourages innovation and open dialogue, moving away from aggressive enforcement actions that have frustrated crypto advocates.
Trump's victory brought renewed attention to the SEC, as he pledged to fire current Chair Gary Gensler immediately upon taking office. This potential leadership change could reshape the landscape for cryptocurrency regulation in the US. During his campaign, Trump labeled the Biden administration’s approach as an “anti-crypto crusade” and promised reforms to unify the nation and stimulate progress.
Under Gensler’s leadership, the SEC pursued legal action against numerous major crypto firms, including Coinbase and Uniswap. The lack of explicit guidelines has left crypto companies grappling with compliance uncertainty, which Grewal argued could be resolved through clear rulemaking.
Speculation about a possible successor has centered on Hester Peirce, an SEC commissioner dubbed “Crypto Mom” for her support of crypto-friendly policies. Peirce has criticized the SEC’s heavy reliance on enforcement and advocated for clearer regulations to benefit the industry and enhance the US’s position in global digital finance.
Meanwhile, Coinbase itself faces scrutiny over allegations of excessive fees for token listings. Tron founder Justin Sun claimed in a Nov. 4 post that Coinbase sought $300 million to list the Tron token. Fantom Network’s founder, Andre Cronje, backed these allegations, stating that Coinbase proposed fees ranging from $30 million to $300 million, compared to Binance’s $0 charge. These claims appear to conflict with Coinbase CEO Brian Armstrong’s statement on Nov. 2 that asset listings on Coinbase are free.