Coinbase Applauds Trump’s Policies: “We’re Feeling Very Good”

He shared his perspective on the significant policy shifts that took place in Donald Trump’s first week as president. In a recent interview, Grewal covered key developments in crypto regulation, the reversal of SEC policies, and the growing influence of the crypto industry in Washington.

We’re feeling very good,

Grewal stated, emphasizing that recent regulatory moves align with the industry’s expectations and long-term vision. 

He highlighted several key initiatives introduced by the Trump administration, including executive orders addressing cryptocurrency policy, the repeal of SEC Staff Accounting Bulletin (SAB) 121, and a newly elected Congress, which he described as the most pro-crypto in history.

Repeal of SAB 121: A Game-Changer for Banks

One of the most significant regulatory shifts under the new administration has been the repeal of SAB 121, a rule introduced under former SEC Chairman Gary Gensler. This Staff Accounting Bulletin (SAB) required financial institutions to classify custodied crypto assets as liabilities, placing major capital restrictions on banks.

According to Paul Grewal, Coinbase’s Chief Legal Officer, overturning this rule removes a major barrier for traditional financial institutions, particularly banks, allowing them to actively participate in crypto custody and services.

This move finally enables fair and full participation by traditional financial institutions,

Grewal stated. 

He called the repeal a timely and necessary step, aligning with Congress’s previous efforts to eliminate SAB 121 during the last legislative session. 

The SEC first introduced SAB 121 in April 2022, sparking widespread criticism from the financial sector. The backlash was so strong that by May 2024, more than 20 House Democrats and 12 Senate Democrats voted in favor of its repeal.

Despite President Joe Biden’s prior commitment to veto the resolution, a significant number of Democratic lawmakers still supported the repeal.

A New SEC Approach: Signs of Change

Paul Grewal also addressed Coinbase’s ongoing legal battle with the SEC, expressing optimism that the agency’s new leadership may take a more constructive stance. With acting Chairman Mark Uyeda and Commissioner Hester Peirce, a well-respected figure in the crypto community, Grewal sees hope for a shift in regulatory strategy.

He pointed to the SEC’s newly formed task force, which is currently reviewing its enforcement policies, particularly in cases involving crypto exchanges like Coinbase, which have actively sought compliance and registration.

We’re quite hopeful,

Grewal said, adding that the change in leadership could signal a move away from the SEC’s previous punitive approach.

He expects the SEC to prioritize encouraging registration and compliance rather than relying on litigation and enforcement actions as its primary regulatory tools.

Coinbase’s Collaboration with the Trump Administration

Coinbase has maintained close ties with the Trump administration since the early days of the presidential campaign. According to Paul Grewal, the company has been actively engaging with policymakers, educating them on the complexities and challenges of the crypto industry.

He highlighted several key initiatives by the administration, including establishing a crypto advisory council led by David Sacks, appointing Bo Hines to oversee crypto regulation, and issuing a presidential pardon for Silk Road founder Ross Ulbricht. 

According to Grewal, these actions reflect the administration’s commitment to honoring campaign promises and advancing crypto innovation.

Trump’s Meme Coin: A Divisive Topic

When asked about the newly launched $TRUMP memecoin, Paul Grewal acknowledged its controversial nature but firmly defended Coinbase’s decision to list it. The Chief Legal Officer explained that Coinbase applies uniform listing standards to all tokens, leaving it up to the market to determine their value and relevance.

It’s easy to dismiss things like meme coins, but history has shown that seemingly trivial innovations can lead to significant developments,

Grewal noted.

It’s easy to dismiss things like meme coins, but history has shown that seemingly trivial innovations can lead to significant developments

The Crypto Industry’s Battle Against Debanking

Paul Grewal also addressed the issue of “debanking”—the growing pressure on banks to restrict access to financial services for crypto companies and their clients. Coinbase is currently suing the Federal Deposit Insurance Corporation (FDIC) over alleged violations of the Freedom of Information Act (FOIA).

The exchange claims that financial regulators have actively worked to undermine the digital asset industry, specifically accusing the FDIC of pressuring banks to cut off crypto firms from the financial system.

It’s gratifying to see Congress, the president, and even figures like Jamie Dimon (JPMorgan Chase CEO — ed.) acknowledging the problem,

Grewal stated. 

He highlighted the bipartisan support for Coinbase’s position, citing key figures such as Maxine Waters (Senior Democratic Member of the House Financial Services Committee), Senator Tim Scott (Republican), and French Hill (Chairman of the House Financial Services Committee).

Grewal emphasized that access to banking services is a fundamental right, and Coinbase will continue pushing for fair treatment of the crypto industry.

Whatever is required, Coinbase will step up and deliver,

he concluded.

Profile: Paul Grewal, Chief Legal Officer, Coinbase Global, Inc.

Education

• B.S. in Civil and Environmental Engineering, Massachusetts Institute of Technology (1993)
• Juris Doctor (J.D.), University of Chicago Law School (1996)

Professional Background 

Paul Grewal has built a distinguished career at the intersection of law, technology, and the judiciary. After earning his law degree, he clerked for the U.S. District Court for the Northern District of Ohio and later for the U.S. Court of Appeals for the Federal Circuit. He later specialized in commercial and patent litigation at Pillsbury Winthrop Shaw Pittman LLP before becoming a partner at Howrey LLP.

In December 2010, Grewal was appointed magistrate judge of the United States District Court for the Northern District of California, where he served until June 2016. 

He then joined Facebook as Vice President and Deputy General Counsel, holding the position from June 2016 to August 2020, before taking on his current role at Coinbase.

Role & Achievements 

As Chief Legal Officer at Coinbase, Paul Grewal is responsible for legal strategy, regulatory compliance, global intelligence, and government relations. 

He plays a key role in navigating complex regulatory landscapes, advocating for the crypto industry, and representing Coinbase in high-profile legal disputes, including its ongoing litigation with the U.S. Securities and Exchange Commission (SEC).