Coinbase has urged the US Office of Government Ethics to remove a rule prohibiting Securities and Exchange Commission (SEC) staff from holding cryptocurrencies. Coinbase's chief legal officer Paul Grewal emphasized that to effectively regulate the rapidly evolving crypto space, SEC staff must have direct experience with the technology. In letters addressed to officials at the OGE, Grewal stated that understanding crypto is crucial for developing effective regulatory frameworks. The existing advisory prohibits SEC staff from trading cryptocurrencies, categorizing them as assets that do not meet the definition of publicly traded securities. Grewal called for the SEC to provide waivers that would allow Crypto Task Force members to use cryptocurrencies to deepen their insights into the underlying digital asset technology. This stance comes after former SEC Chair Gary Gensler's tough approach to crypto regulation, which led to numerous actions against crypto firms. Recently, the SEC has retreated from various lawsuits against companies like Coinbase, signaling a possible shift in its regulatory strategy.

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