Coinbase exec urges SEC reform after Trump’s election win

Paul Grewal, chief legal officer at Coinbase, urged the United States Securities and Exchange Commission to change its approach toward crypto following Donald Trump’s election as president for a second term.

Grewal expressed hope that the SEC would adopt a regulatory framework that favors open dialogue and innovation over litigation, reflecting a sentiment among crypto advocates who are increasingly frustrated with the US regulator’s enforcement actions.

With Trump promising to fire SEC Chair Gary Gensler, an SEC shakeup could impact more than just the future of crypto in the US.

Trump election and SEC shakeup

After the election win, Trump pledged to focus on unifying the nation and “turning the country around.” During his campaign, he vowed to fire Gensler on day one in office as part of ending what he called the Biden-Harris administration’s “anti-crypto crusade.”

Under Gensler’s tenure, the SEC pursued legal action against several high-profile crypto entities, including centralized cryptocurrency exchange (CEX) Coinbase and decentralized exchange (DEX) Uniswap.

Without explicit regulatory guidelines, crypto companies have faced ongoing uncertainty about compliance, which Grewal argued could be resolved through “rulemaking.”

Will “Crypto Mom” come to the rescue?

Trump’s pledge to remove Gensler has led to speculation about potential successors, especially candidates who may favor a more crypto-friendly approach.

Hester Peirce, an SEC commissioner known for her pro-crypto stance, is often seen as a potential replacement for Gensler She has been dubbed “Crypto Mom” by the community for her advocacy.

Peirce previously voiced criticism of the SEC’s enforcement-led approach, suggesting that regulatory clarity for the crypto industry would better serve the public interest and the US position in global digital finance.

Coinbase under scrutiny

Despite the push for SEC clarity and transparency, Coinbase has also come under scrutiny following allegations that it charges high fees for listing tokens.

In an X post on Nov. 4, Tron founder Justin Sun claimed that Coinbase asked for $300 million in fees to list the Tron token.

Andre Cronje, founder of the Fantom Network, echoed Sun’s claims, posting on Nov. 3 that Coinbase proposed listing fees for Fantom ranging from $30 million to $300 million, while Binance charged $0.

The claims by Sun and Cronje contradict Coinbase CEO and co-founder Brian Armstrong’s statement in a Nov. 2 X post that “Asset listing on Coinbase are free.”

Source: https://cointelegraph.com/news/trump-sec-shakeup-coinbase-pro-crypto-reforms