Coinbase Chief Legal Officer Paul Grewal expressed hope that the U.S. Securities and Exchange Commission (SEC) received a message from voters indicating a desire for a change in the regulatory approach to the cryptocurrency industry. Grewal shared his thoughts in a post on X dated November 5.
"I hope @SECGov understands what has happened tonight," said Grewal. "On many, many issues, the voters said loud and clear that they want change. Crypto is no exception. Stop suing crypto."
According to Fortune, pro-crypto candidates from both political parties achieved success in both the House and Senate elections. A significant victory for the crypto industry was marked by the defeat of Senate Banking Committee Chairman Sherrod Brown, described as one of the industry's "greatest foes." This development could potentially facilitate the passage of blockchain legislation in the Senate during its next session.
Yahoo Finance reported that participants within the crypto industry have been advocating for the replacement of SEC Chair Gary Gensler, whom they accuse of pursuing an unfair vendetta against their sector. Both Donald Trump and Kamala Harris indicated during their campaigns that they would appoint a new SEC chair to replace Gensler. One potential candidate for this role is SEC Commissioner Hester Peirce, who joined the commission in 2018 and has repeatedly voiced her disagreement with its current approach to cryptocurrency regulation. In May, Peirce said that using enforcement as the primary method to establish policy in this area is not effective.
Federal Newswire previously reported findings from Social Capital Markets showing that SEC fines against the crypto industry surged from $150.26 million in 2023 to $4.68 billion in 2024, representing a 3018% increase. Despite this rise in penalties, industry participants continue to highlight a lack of regulatory clarity within the crypto ecosystem. SEC Commissioner Mark Uyeda commented on this issue, stating: "I think our policies and our approach over the last several years have been just really a disaster for the whole industry." He emphasized the need for clear guidance and interpretations regarding what falls within and outside securities laws.
Grewal joined Coinbase in 2020 and also serves as director of the nomination and governance committee at the Law Foundation of Silicon Valley, according to LinkedIn. Prior to his role at Coinbase, he was vice president and deputy general counsel at Facebook.
