Coinbase has urged the U.S. Office of Government Ethics to remove a rule that prohibits Securities and Exchange Commission staff from holding cryptocurrencies. Paul Grewal, Coinbase's chief legal officer, stated that this restriction hinders the agency's Crypto Task Force by preventing staff from gaining direct experience with crypto, which is necessary for understanding and regulating the technology effectively. In his letters to OGE and SEC Chair Paul Atkins, Grewal emphasized that regulation requires comprehension, which can only come from hands-on use of the technology. He suggested issuing waivers to members of the Crypto Task Force to allow them to engage with cryptocurrencies while formulating regulations. Grewal highlighted that despite a directive for regulatory recommendations due in 90 days, SEC staff remains unable to utilize the very technology they are tasked with regulating. This situation was further complicated by the previous SEC chair Gary Gensler's stringent crypto regulations, which the current SEC has begun to reconsider. Grewal argued that enabling SEC staff to hold crypto would significantly improve their ability to create informed regulatory frameworks.

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