Unchained The Chopping Block: Coinbase’s Paul Grewal on Why the SEC Is Going After Crypto So Aggressively - Ep. 538
Aug 31, 2023
Paul Grewal, the Chief Legal Officer of Coinbase, dives deep into the recent court victory for Grayscale against the SEC, which he calls monumental for the crypto landscape. He discusses the SEC's evolving stance, particularly how the fallout from FTX has influenced its regulatory approach to Coinbase. Grewal shares insights on the significance of a potential spot Bitcoin ETF approval, the challenges posed by the SEC's proposed regulations, and the ongoing legal debate surrounding Tornado Cash. His bold views on reforming crypto regulation spark an engaging discussion.
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Grayscale's Monumental Win
- Grayscale's win against the SEC is monumental because the court deemed the SEC's denial "arbitrary and capricious."
- This win suggests a pushback against the SEC's perceived overreach in the crypto market.
Spot Bitcoin ETF's Impact
- Some believe a Bitcoin spot ETF won't significantly increase retail participation, as interested individuals already find ways to buy Bitcoin.
- It may, however, be more impactful for institutional investors who prefer established financial products.
SEC's Contradictory Stance
- The SEC’s approval of Bitcoin futures ETFs while denying spot ETFs seems illogical, as futures track spot prices.
- This suggests the SEC might be trying to control the growth of digital assets beyond just market manipulation concerns.