A ‘pro-crypto’ congress is coming: Coinbase CLO

In an interview, Paul Grewal, Coinbase’s Chief Legal Officer, said that a shift is coming in the U.S. crypto legislative landscape. He forecasted the emergence of a “pro-crypto” Congress following the 2024 elections. 

Grewal discussed in a Bloomberg Crypto interview how bipartisan support for crypto and evolving political dynamics will soon lead to more favorable crypto policies. Grewal mentioned how there is a growing interest of both Democrats and Republicans toward crypto and digital assets. 

“There’s no question about it; we are going to see a pro-crypto Congress emerge, regardless of the particular outcome in individual races, and of course, the outcome in the presidential race.”

Paul Grewal

This development starkly contrasts the current regulatory environment led by the SEC under Gary Gensler. Gensler has questioned crypto and Bitcoin’s (BTC) legitimacy, emphasizing its association with fraud, manipulation, and illicit activities despite the SEC’s earlier approval of Bitcoin ETFs.

FIT 21

Grewal’s optimism towards Congress seemed rooted in recent bipartisan legislative efforts, such as the FIT 21 bill, which he described as a strong foundation for establishing a clear market structure for cryptocurrencies while ensuring critical investor protections.

The bill, which passed with bipartisan support in the House, is now under consideration in the Senate.

Grewal emphasized the growing recognition among lawmakers of the importance of crypto, as shown by the support of 71 Democrats and Republicans in the House.

Pro-crypto congress

Moreover, Grewal discussed the broader implications of a pro-crypto Congress, suggesting that such a shift could lead to a regulatory environment more focused on legislation than on litigation—a departure from the current SEC approach. 

Grewal pointed out the global context, noting how other regions, particularly Europe, have adopted more pragmatic and consistent crypto regulations, which could serve as a good model for the U.S. 

“We’re seeing a much more sensible, pragmatic, and still tough approach being taken in Europe, focusing on legislation, not litigation.”

Grewal