Coinbase CLO Paul Grewal and pro-XRP lawyer John Deaton recently engaged in a thought-provoking discussion, shedding light on the regulatory challenges that the cryptocurrency and digital asset sector faces. They emphasized the importance of a unified approach against the Securities and Exchange Commission (SEC), whose lack of clear guidance continues to frustrate industry players.
Discover more- read on!
SEC is stalling the progress of crypto
Despite Coinbase’s efforts to establish a detailed evaluation process for digital assets and their engagement in over 30 meetings with the SEC, the regulator has remained unresponsive and threatened litigation. Grewal believes the issue lies with the SEC’s political leadership, particularly the chair, who seems disinterested in providing clear rules for investor protection and innovation promotion.
XRP Holders Caught in the Crossfire
The ongoing Ripple XRP case, with its implications for secondary market sales, was another hot topic. Grewal acknowledged XRP holders’ frustration and Coinbase’s commitment to applying the law equally for everyone, including XRP holders. He also mentioned Ripple’s fair notice defense, which he believes should prevail in court.
A clash of Opinions
However, digital enthusiast and lawyer Bill Morgan raised concerns about Coinbase’s consistency regarding secondary market sales of XRP compared to other digital assets alleged as securities by the SEC. Morgan argued that Grewal avoided addressing this issue during the interview. While both Grewal and Deaton agreed that secondary market sales are not investment contracts, Morgan found it perplexing that XRP has been treated differently from other digital assets listed on Coinbase.
The conversation also touched on the debanking issue in the crypto industry and Grewal stressed the importance of addressing this issue and encouraged the crypto community to get involved in initiatives like Coinbase’s Crypto 435, which aims to foster communication between the crypto industry and congressional representatives across the United States.
As the search for regulatory clarity continues, industry players like Coinbase and pro-XRP lawyers like Deaton collaborate, hoping to find a path forward amid the confusion. Will they succeed? Only time will tell.