Coinbase Chief Legal Officer Paul Grewal Expresses Concerns About Crypto Market! Here Are the Details

At the Asia Blockchain Summit in Taipei Coinbase’s Chief Legal Officer Paul Grewal, He called for a non-partisan approach to cryptocurrency regulation, emphasizing the need for bipartisan support to ensure the continued growth and development of the crypto industry.

Coinbase’s Paul Grewal Calls for Non-Partisan Approach to Crypto Regulation

Grewal’s remarks come amid growing political interest in crypto issues in the United States, especially in light of recent statements by Republican candidate Donald Trump.

During his interview, Grewal expressed concern over the politicization of cryptocurrency, saying he believes it could hinder its progress.

“My number one concern is that crypto becomes politicized and becomes a partisan issue that will at least slow down and perhaps worse, threaten its continued growth and development,” Grewal said.

Grewal highlighted the limitations of existing regulatory frameworks, such as the Howey Test, which was established in the 1940s to address real estate investments.

He argued that this outdated test is impractical to apply to modern blockchain technology. “It needs to be understood that the Howey Test was developed in the context of Orange Grove real estate in Florida in the 1940s and 50s,” he said.

He stressed the importance of adapting legal precedents to new technologies and market developments, rather than rigidly adhering to old models.

“Precedents, including the Supreme Court, have always recognized that they apply in specific contexts and must adapt to new technologies and issues that arise in markets and the economy more generally,” Grewal continued.

Unlike the US, Grewal praised Asia for its progressive and flexible approach to cryptocurrency regulation.

He noted that regulators in Hong Kong have been proactive in creating a digital asset licensing framework and allowing crypto ETF issuers to offer in-kind redemptions, a practice that is not permitted by the SEC.

*This is not investment advice.