Coinbase Chief Legal Officer Predicts Big Changes in US Crypto Policy

Paul Grewal, Chief Legal Officer of Coinbase, recently expressed optimism about a potential shift in US crypto policy, anticipating significant changes in both the creation and enforcement of the regulations surrounding digital assets.

In an interview posted on X, Grewal mentioned that the government needs to provide clearer guidance and support innovation within the digital asset space, aligning with the needs of a growing user base.

With the recent elections over, Grewal emphasized that the voices of the 52 million Americans who have owned digital assets were heard loud and clear. He urged lawmakers to keep the "crypto issue" nonpartisan, calling on both Democrats and Republicans to collaborate on sensible regulations that ensure fair treatment of crypto under the law. According to Grewal, bipartisan support is crucial to establish a stable regulatory framework that encourages innovation while protecting investors.

Coinbase CEO Brian Armstrong has echoed this sentiment, urging the next U.S. SEC chair to reconsider the agency’s approach to crypto regulation. Armstrong suggested that withdrawing "frivolous cases" against crypto companies and offering an apology to the American public would be a good first step toward rebuilding trust in the SEC as a regulatory body. While an apology alone wouldn’t reverse the damage already done, he argued it would demonstrate a willingness to engage more constructively with the industry.

Grewal highlighted the importance of having “a fresh pair of eyes” at the top and a clearer regulatory framework that allows the industry to grow without unnecessary legal battles. “It’s time to stop suing crypto and start having meaningful discussions about it,” he said, emphasizing the need for a collaborative approach that could foster mutual understanding and support the rapid evolution of the digital asset landscape.

Newly-elected President, Donald Trump, promises to shake up the SEC’s approach to crypto—starting with his own statement of firing SEC Chair Gary Gensler on his first day back in office—has also stirred interest. Trump’s pro-crypto stance signals his intent to push for policies favorable to digital assets, with speculation that Hester Peirce, a known crypto-friendly SEC Commissioner, might replace Gensler.