The General Counsel of Coinbase has criticised the SEC’s lack of crypto-related guidance

The SEC’s reluctance to issue guidance led to worries about restricting creativity.

Paul Grewal, Coinbase’s chief legal officer, has expressed disappointment at the SEC’s failure to provide guidance to cryptocurrency firms wanting to comply with regulatory obligations.

This position has led XRP supporter and lawyer John Deaton to concur with Grewal’s opinion, which has caused some concern in the cryptocurrency community. Gary Gensler and the SEC have come under fire from Deaton for inhibiting ethical behaviour and using crypto businesses’ own voluntary disclosures to justify enforcement proceedings against them.

Grewal was perplexed by the implication that he was planning to break the law since he sought legal counsel to make sure he was following the rules. According to him, such meetings often act as a preventative step, putting an end to any suspicion of criminal intent.

The idea that getting help to follow the law is evidence of a desire to disobey it seems counterintuitive to me. In fact, the inverse is true often enough to be considered the norm.

John Deaton, an attorney who advocates for XRP, reiterated Grewal’s comments, stressing that Gensler’s SEC has shown an unfavourable attitude towards the crypto industry, which discourages prudent behaviour. The SEC’s position that obtaining legal counsel before a token sale constitutes a violation of Section 5 of the Securities Act has been met with debate.

Deaton gave examples of how the SEC exploited open information on partnerships and token sales to bring charges against firms, claiming that token holders had a common financial interest.

Deaton claims that the SEC’s use of this strategy implies that the corporations were conspiring when this was not their goal.

Given the SEC’s propensity to use collaboration against crypto firms, the atmosphere for cooperation and compliance with the regulator has gotten more difficult.

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