Coinbase’s Chief legal officer talks about developments in regulatory landscape

ambcrypto.com:

Paul Grewal, the Chief Legal Officer of Coinbase, recently appeared in an episode of Unchained Podcast hosted by popular crypto influencer Laura Shin.

The podcast, which also featured Polygon Labs’ Chief Policy Officer Rebecca Retig, touched upon several topics like the current regulatory landscape in the United States and the enforcement actions initiated by U.S. regulators. 

According to Grewal, the recent regulatory crackdown that saw multiple crypto firms like Paxos and Kraken subjected to enforcement actions was the result of the prolonged market downturn combined with the string of scandals and bankruptcies in the crypto market throughout 2022.

Speaking on the potential implications of the SEC’s $30 million settlement with Kraken that saw the latter’s staking program shut down in the United States, the Coinbase executive stated that the settlement had no binding precedential effect, with essentially nothing being proven in a court of law.

According to him, the settlement gave very little insight into the law that the SEC used to initiate the enforcement action against Kraken’s staking program.

He reiterated that Kraken’s staking products were very different from the staking features offered by other platforms, including Coinbase.

He clarified that when it comes to Coinbase’s staking products, there’s no question about who owns the assets, stating that the title of the staked assets always remains with the customer.

Furthermore, the staking rewards in Coinbase were set by the network, with no discretion from the platform whatsoever.

Grewal also highlighted the implications of the SEC’s actions on the National Security of the United States, likening the matter to the semiconductor industry that is currently