- Coinbase Chief Legal Officer Paul Grewal asserts the SEC must approve Bitcoin ETF applications in compliance with the law.
- Grewal joins other industry leaders in his optimism following the SEC’s court loss to Grayscale, signaling a potential green light for Bitcoin ETFs.
Coinbase’s Chief Legal Officer, Paul Grewal, has recently vocalized his assurance regarding the impending approval of spot Bitcoin Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). This confidence emanates from the recent legal developments and the SEC’s apparent shift in stance towards such crypto financial products.
A Pivotal Moment for Bitcoin ETFs
Grewal aligns his perspective with other influential figures in the crypto space, such as Mike Novogratz, Cathie Wood, and Larry Fink, all of whom perceive the SEC’s recent court defeat against Grayscale as a harbinger for the approval of spot Bitcoin ETFs. In a candid discussion with CNBC, Grewal articulated his optimism, emphasizing that the law mandates such approval. While the ultimate decision rests solely with the SEC, Grewal underscored the inevitability of the decision being swayed by legal obligations.
“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law,”
Grewal stated, highlighting the legal imperative guiding this process.
The U.S. Court of Appeals has played a crucial role in delineating the boundaries of the SEC’s power, asserting that the regulatory body cannot arbitrarily or capriciously reject Bitcoin ETF applications. This legal stance was evident in the court’s decision in favor of Grayscale, supporting its initiative to convert its substantial GBTC bitcoin fund into an ETF. This legal victory has set a precedent, prompting Grayscale to update its spot Bitcoin ETF filing, in anticipation of a favorable outcome.
The SEC, which has previously faced criticism from federal judges for its ambiguous stance and lack of clear reasoning in its actions against crypto firms, is now seemingly more collaborative with Bitcoin ETF applicants. This shift in approach is interpreted by many as a precursor to the imminent approval of spot Bitcoin ETFs.
A Boon for Coinbase
As the crypto landscape navigates through these regulatory waters, Coinbase stands to gain significantly from any progress in the Bitcoin ETF domain. The platform anticipates a surge in trading volumes and investor interest, following a potential ETF approval. Furthermore, Coinbase is actively challenging the SEC’s jurisdiction on crypto regulation, asserting that the regulator has overreached its authority, and calling for the dismissal of the ongoing lawsuit.
Coinbase’s active involvement and vocal stance on these matters underscore the platform’s commitment to fostering a regulated and law-abiding crypto investment environment, aligning with the broader industry’s push for clarity and fairness in crypto regulation.