Paul Grewal of Coinbase Calls Trump’s Victory a ‘Watershed Moment’ for Crypto Regulation

Donald Trump’s victory in the 2024 U.S. presidential election marks a pivotal moment for the cryptocurrency sector. As the former president secures a second term with 295 electoral votes, industry leaders are watching closely to see how his administration will reshape policies that have long been a source of debate and uncertainty in the world of crypto.

In an exclusive interview with Cryptonews.com, Coinbase’s Chief Legal Officer Paul Grewal shared his perspective on the impact of Trump’s re-election on the crypto industry. Grewal believes this win could be a “watershed moment” for digital assets, signaling potential legislative and regulatory changes that could provide more clarity and structure for the sector.

Trump’s Re-election: A New Era for Crypto Legislation

With Trump back in office, Grewal sees an opportunity for significant movement on crypto-related bills. In particular, he is optimistic about the passage of the 21 Market Structure Bill, which has already passed the House and is waiting for action in the Senate. The bill, he explains, could provide much-needed clarity on the classification and treatment of digital assets, an issue that has plagued the industry for years.

Grewal also pointed to stablecoin regulation as another area that could see forward progress. “We hope we’ll get a vote even as early as in the lame duck term,” he said, referring to the period following the election but before the new administration fully takes office. This is crucial for the industry, as stablecoins have increasingly become a cornerstone of crypto markets.

A Change in SEC’s Approach to Crypto

One of the most notable shifts under Trump’s administration, according to Grewal, will be the change in leadership at the Securities and Exchange Commission (SEC). He believes the new SEC chair will be more open to crypto and better aligned with the interests of investors and innovators.

“It’s very clear we will get a new chair of the SEC, and with that, a reset on crypto policy,” Grewal said, expressing confidence that this shift would lead to more productive outcomes for the industry. He pointed to current SEC commissioner Hester Peirce as a potential candidate for the role, noting her longstanding support for crypto and innovation.

For Grewal, the upcoming changes in the SEC’s approach to crypto could move away from the current reliance on court actions, which have often resulted in legal battles that have left the industry in limbo. Instead, he anticipates a more straightforward process that involves clearer rule-making.

Regulatory Reset: A Focus on Rules, Not Lawsuits

This shift in policy is not limited to the SEC. Grewal believes that other federal agencies such as the Department of Justice, the Commodity Futures Trading Commission (CFTC), and the Treasury Department will also play key roles in reshaping crypto regulation.

“It’s not just about the SEC,” he said. “We’re going to see a real reset that focuses on rules and law rather than simply lawsuits and endless litigation.” This could mark a dramatic departure from the current regulatory landscape, where legal uncertainty has often stifled innovation and made it difficult for businesses to operate with confidence.

Coinbase’s Role in the Changing Landscape

Amid these potential changes, Grewal made it clear that Coinbase remains committed to innovation. He discussed the company’s efforts to enhance its Layer 2 solutions, develop self-custodial wallets, and explore new use cases, such as digital health records and content ownership.

“We continue to push the envelope on innovation, and we’re not going to let past regulatory hurdles stop us,” Grewal said. He also highlighted Coinbase’s willingness to work alongside both Democrats and Republicans in shaping a balanced approach to crypto policy. “Democrats are going to matter too,” he noted, emphasizing the importance of bipartisan cooperation in advancing legislation that benefits the industry.

The Future of Crypto: A New Day Dawns

For Grewal, the results of the 2024 election are a sign of a new era for the crypto industry. “Tuesday’s events really do signal a new day for crypto and the crypto voter,” he said. With the most pro-crypto Congress in place and a potential shift in regulatory outlook, Grewal expressed his excitement about the future.

Coinbase, under his leadership, is poised to continue its role as a key player in the industry, offering both innovation and industry expertise to help shape crypto policy. Grewal’s comments suggest that the crypto sector is entering a new phase, one that could be marked by clearer regulations, increased innovation, and greater acceptance within the broader financial system.