paulgrewal.eth
@iampaulgrewal
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Chief Legal Officer @coinbase. I talk a little crypto, a lot of law, and way too much Ohio sports.
California, USA
Joined January 2015
Privacy wins. Today the Fifth Circuit held that @USTreasury’s sanctions against Tornado Cash smart contracts are unlawful. This is a historic win for crypto and all who cares about defending liberty. @coinbase is proud to have helped lead this important challenge. 1/6.
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We've read Judge Torres' thoughtful decision. We've carefully reviewed our analysis. It's time to relist.
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Coinbase received a Wells notice from the SEC. After years of asking for reasonable crypto rules, we're disappointed that the SEC is considering courts over constructive dialogue. But if courts are required, so be it. We'll defend the rule of law. 1/15
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Today, we filed a narrow action in the U.S. Circuit Court to compel the SEC to respond “yes or no” to a rulemaking petition we filed with them last July asking them to provide regulatory guidance for the crypto industry. 1/4
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We screwed up and we are sorry. Yesterday we shared an overview of the $pepe meme coin to provide a fact-based picture of a trending topic. This did not provide the whole picture of the history of the meme and we apologize to the community.
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You've long wanted the frog. Well, soon you'll get the frog. @coinbase is adding PEPE to our listing roadmap with the goal of listing later today. Thanks for your patience.
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Most days I love being a lawyer. Today is one of them.
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Don’t be misled that Judge Torres ruled that sometimes XRP is a security and sometimes it isn’t. That’s exactly the opposite of what she ruled: XRP itself is NEVER a security. “ Page 15: "XRP, as a digital token, is not in and of itself a ‘contract, transaction[,] or scheme’.
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Today, the Court decided that our SEC case will move forward on most of the claims, but dismissed the claims against Coinbase Wallet. We were prepared for this, and we look forward to uncovering more about the SEC’s internal views and discussions on crypto regulation. 1/6.
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I hope @SECGov understands what has happened tonight. On many, many issues, the voters said loud and clear that they want change. Crypto is no exception. Stop suing crypto. Start talking to crypto. Initiate rulemaking now. There's no reason to wait.
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Earlier tonight the Third Circuit issued a short order in Coinbase’s mandamus action today. The court noted the SEC’s suit against us this morning and asked the SEC whether that means the SEC has decided to deny our pending petition for rulemaking. The SEC has 7 days to respond.
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Today the SEC denied Coinbase’s petition for rules for crypto. After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we'll again seek its help by challenging the SEC’s abdication of its duty. 🧵⬇️
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We finally got the unredacted OCP 2.0 letters from @FDICgov. It took a Court order but you can now read them for yourself below. They show a coordinated effort to stop a wide variety of crypto activity — everything from basic BTC transactions to more complex offerings. 1/3.
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Sigh. again with the ETH misinformation as we await a decision on ETH ETPs. Ok--let’s talk about some basic facts about Ethereum. Millions of Americans hold ETH; it has been vital to crypto since its 2015 launch; and ETH is a commodity, not a security. 1/10.
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Slowly but surely, the picture is becoming clear. After we sued, @FDICgov finally started giving us information related to our FOIA request about the pause letters it sent to financial institutions as part of Operation Chokepoint 2.0. In short, the contents are a shameful example.
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Today, @coinbase filed our brief asking the Court to dismiss the SEC’s case against us. Our core argument is simple — we do not offer "investment contracts" as that term has been construed by decades of Supreme Court and other binding precedent. 1/3
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XRP trading on @coinbase is available again in NY. We heard you and put in the work in strong partnership with the State. And now the word can be put out— we are back up.
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Today, Coinbase is sharing our response to the SEC’s Wells notice from last month. 1/7
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We just won our petition for a writ of mandamus at the Third Circuit. Rebuking @SECGov for its order denying our rulemaking petition, the Court held that the "SEC’s order was conclusory and insufficiently reasoned, and thus arbitrary and capricious, we grant Coinbase’s petition.
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71 House Democrats. Let that sink in— 71 House Democrats just joined Republicans to defeat the scape goating, fear mongering and ignorance of fellow legislators who refused to legislate. Thank you Congress— FIT21 is real progress.
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Tomorrow I will be testifying on Capitol Hill before the House Committee on Agriculture on the need for clear crypto rules and the Digital Asset Market Structure Discussion Draft. Read a summary of my testimony here/below:
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I know ETH is a commodity. You know ETH is a commodity. The CFTC knows ETH is a commodity. It's time for the SEC to admit that it still knows ETH is a commodity too. No more games. Thank you to @Consensys for standing up against the SEC's unlawful expansion of authority.
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After Coinbase gave notice of it intent to move to throw out their case, we consented to a few extra days for the SEC to explain why it intends to oppose. They’ve now filed and, sadly, it’s more of the same. 1/6.
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In just 60-something words, SEC Commissioner @HesterPeirce has managed to articulate all that hits awfully close to home. Thank you.
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"The SEC regrets any confusion it may have invited" by falsely and repeatedly stating that tokens themselves are securities. This is the remarkable representation in Footnote 6 of @SECGov's Amended Complaint against Binance. I hope @s_alderoty is getting some good sleep tonight.
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My mom always told me if I didn't have anything nice to say, don't say anything at all. So I'm just gonna sit this one out.
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Today the SEC responded to Coinbase’s petition for a writ of mandamus — asking the court to require the SEC to respond just yes or no to whether it will undertake rulemaking for our industry. The SEC’s answer? A resounding maybe. 1/7.
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Gm indeed. We've now added WIF to the roadmap with the goal of listing later today on @coinbase. Thank you.
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The Third Circuit just ruled that it will retain jurisdiction over our challenge to the SEC's inaction on our petition for basic rules for crypto. A further report is due in 120 days. We are grateful that the Court will continue to shine a bright light on an SEC process that
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We couldn't wait until our deadline next week to address the SEC's response to the June 6 order from the Third Circuit. It is unusual for the government to defy a direct question from a federal court. But the SEC’s evasive response goes further, as we set out today. 1/5
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1. Hearing on motion to seize Binance assets in DDC;.2. Release of Hinman docs in SDNY;.3. SEC response to order on @Coinbase petition in 3rd Cir. Not every federal court day is eventful in crypto, but tomorrow is. May God bless the US Courts.
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"The regulatory gap." Proof from the Hinman emails of what we've been saying to the Third Circuit, to Congress and to the SEC itself: that the securities laws are incomplete when it comes digital assets, that securities law aren’t meant to rule over all digital assets, and that
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This week, this day, has been a rollercoaster unlike any other I’ve seen. ETH is effectively deemed a Commodity as we’ve always known it to be. I’m proud to be on team @Coinbase, the trusted partner and custodian for many of the issuers who had 19b-4’s approved tonight.
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1/3 Promise made, promise kept: we are now on file with Third Circuit to challenge the SEC's arbitrary and capricious denial of our petition for crypto rulemaking. We again appreciate the Court's consideration.
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A few months ago, Coinbase backed a legal challenge to sanctions imposed by the US govt against Tornado Cash. Today the plaintiffs filed a motion for summary judgment, asking the court to reopen TC for all. Their arguments are simple but powerful. 1/10
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Mandate issued— there will be no further appeal by the government. Victory secured.
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A security can apparently also be a commodity, except when it's not. And it depends on which regulator you ask, and when. If you're confused, you are not alone. Is this really the best American law has to offer?.
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We appreciate the Second Circuit confirming today what is clear under the federal securities law: there's no private liability for the secondary trading of digital assets on exchanges like Coinbase. Why? Because contracts matter. 1/2.
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This is a big deal. But keep in mind this almost didn’t happen. 1/3.
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A few minutes ago, the SEC filed its response to the last week's Third Circuit. You can read it for yourself below together with my own initial read of it. 1/5.
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The SEC is required by law to respond to petitions “within a reasonable time,” but they have not yet responded to our petition from last July, which is why we filed our action in court today. 2/4.
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SEC Commissioners Peirce and Uyeda: "This scene is by no means hypothetical." . No. No it is not. I have the receipts.
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The Third Circuit just issued a text-only order directing the SEC to file a response to our mandamus petition within 10 days (and gave us 7 days for a reply). Here’s the text of the order:. TEXT ONLY ORDER (Clerk) At the direction of the Court, Respondent is ordered to file an.
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60 yes votes-- a bipartisan supermajority! And a resounding rebuke of @SECGov overreach and disdain for federal administrative law. The message from Congress is clear: enough is enough.
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The crypto industry, and its users need clear laws and rules to follow that are built for a new technology. Enforcement actions based in inapplicable securities law aren’t the answer. 4/4.
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“Many of those tokens are securities under the law of the land, as interpreted by the US Supreme Court. So we follow that law.” . Please stop misleading the market—tokens are NOT securities. Their pleadings notwithstanding , your own attorneys have admitted this in court.
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Your taxes at work. Judge Shelby ordered the SEC to pay attorneys' fees of over $1 million and receivership fees of about $750,000 after finding that "the Commission engaged in bad faith conduct in obtaining and defending the TRO and imposed a sanction against the Commission of
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We have responded to the SEC’s statement of intent to move to strike Coinbase’s defenses rooted in the major questions doctrine, abuse of discretion, equitable estoppel, unclean hands, and laches. We look forward to addressing the Court tomorrow morning.
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Everyone committed to the rule of law should read J. Wiles' Voyager decision. These are remarkable statements from a federal court with no skin in the game other than calling things as they are.🧵⬇️ /www.nysb.uscourts.gov/sites/default/files/opinions/312840_1170_opinion.pdf.
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They just conceded ETH is not offered as an investment contract security in secondary markets. But @SECGov will not explain why ETH and BTC but no others--because they can't. There is no plan, no framework, no logic, no due process, and certainly no respect for the law.
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So far we've uncovered more than 20 examples of the FDIC telling banks to “pause” or “refrain from providing” or “not proceed” with offering crypto-banking services. The public deserves transparency, not an agency that’s working behind a bureaucratic curtain. 2/3.
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Respectfully Senators, the evidence points exactly the opposite way. We have discussed our analysis with SEC staff and would be happy to do the same for you and any other policy makers who have questions. 1/7.
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We should all be grateful to @Grayscale for pushing back against the SEC’s arbitrary and capricious behavior, and clearing the way to get these spot BTC ETFs over the finish line. And of course to the DC Circuit, for affirming that the rule of law must prevail over politics. 2/3.
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Coinbase is proud to engage with Celsius to distribute crypto back to its customers. I wonder, why would the SEC object to a trusted US public company taking on this role? We look forward to addressing this with the bankruptcy court and undertaking our important role to make.
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Today @coinbase filed our opening brief in the Third Circuit challenging the SEC’s denial of our rulemaking petition. Tl;dr: the SEC’s denial is arbitrary and capricious, an abuse of discretion, and a violation of the Administrative Procedures Act. 1/7
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Chevron: gone. Secondary sales in the Binance case: gone (more to say about that. ). And now, late on a Friday, more stonewalling from @SECGov to stop Coinbase from obtaining documents from Gary Gensler in our litigation. 🧵⬇️.
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A major American political party has declared in its official platform its commitment to "the right to self-custody." Why not both major American political parties?.
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I’m watching the @binance news, too. While we wait for a DOJ announcement, a reminder: crypto isn’t going anywhere. But to create a thriving cryptoeconomy in the US, we need clear, sensible regulation so American consumers have access to secure domestic crypto services. 1/4.
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We received this letter from FinCEN congratulating @coinbase on our substantial contributions to one of seven significant criminal cases to receive the FinCEN Director's Law Enforcement Award. We appreciate this recognition of our commitment to weeding out bad actors in whatever
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It's obvious that there’s a lack of clarity among our regulators regarding crypto, as even the chair of the SEC has declined to say which crypto assets are securities. 3/4
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Over the past 9 months, CB has met with the SEC more than 30 times, sharing details of our business to build a path to registration. During this time, the SEC hasn't given basically 0 feedback on what to change, or how to register. Instead, today we received a Wells notice. 2/15.
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Earlier today, @coinbase asked Judge Torres for permission to file an amicus brief in the SEC case over XRP. Our point in pretty simple: this is a textbook case of just how critical fair notice is any reasonable notice of due process under law. 1/3
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@secgov has made a number of misinformed assertions about staking over the past few days, and asked a number of misguided questions. Let's set the record straight point by point--there's a lot of FUD to cover.
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Today @coinbase responded to @SECGov's request for comment on the proposed @Grayscale Ether Trust ($ETHE) ETP. 27 pages and 96 citations that provide the (1) legal, (2) technical, and (3) economic rationale for approval. 1/6.
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So what happens next? We avail ourselves of the court system to finally start to get some clarity for the crypto industry in the U.S. Ironically, establishing some case law may be our best shot at getting the regulatory clarity that the industry deserves. 14/15.
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Our disputes with the @SECGov are about much more than just @coinbase. They are about about an entire industry and the 52 million Americans that own crypto. Thank you to @JohnEDeaton1 (+4,701 Coinbase customers) and @BlockchainAssn for their amicus briefs in support of.
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In a brief to avoid dismissal of its case against Debt Box with prejudice, @SECGov includes a remarkable admission that it did not follow its own typical Wells process when it refused to tell us what assets would be charged as securities: "The Wells process is designed to aid.
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In the fog of war, journalistic mistakes happen. But the @WSJ's own source just rejected its reporting on illicit financing that alarmed dozens of members of Congress. It’s time for the WSJ to come clean and issue a retraction. 1/3.
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"The Commission’s above-discussed conduct constitutes a gross abuse of the power entrusted to it by Congress and substantially undermined the integrity of these proceedings and the judicial process. The operation of the American judicial system rests on the fundamental
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If we want to be taken seriously as a nation, we have to act seriously as a nation. This legislation would finally put the US into the global conversation on digital asset regulation. Congress should enact this without delay.
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A few thoughts on the DOJ’s decision not to pursue campaign finance charges against SBF. Tl;dr: I think it’s a mistake. 🧵⬇️.
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These smart contracts must now be removed from the sanctions list and US persons will once again be allowed to use this privacy-protecting protocol. Put another way, the government’s overreach will not stand. 2/6.
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It is hard to throw the rulebook at an entire economic sector when there is no rulebook and the people responsible for the rulebook can't even agree themselves what the rulebook should say – even as we have asked for a rulebook. 13/15.
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Re: the letters that show Operation Chokepoint 2.0 wasn't just some crypto conspiracy theory. @FDICgov is still hiding behind way overbroad redactions. And they still haven't produced more than a fraction of them. But we finally got the pause letters:
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@KaspaKii @brian_armstrong @coinbase @KaspaCurrency @Kaspa_HypeMan @elldeeone @cz_binance Hi Kaspa team. I'm happy to put you in touch directly with our listings team so they can share further insight into your case. I've emailed you separately. Thanks for reaching out.
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This shouldn't be terribly complicated to understand. 1/4.
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Note that FDIC magically found TWO more pause letters in this search after saying before that it had complied with an earlier Court order. It's hard to believe in their good faith when their sweater further unravels every time we pull on the thread. The new Congress should launch.
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Yesterday we filed a comment letter on the @SECGov proposed rule that seeks to expand the definition of exchange to include DEXs. Tl; dr: this proposal should NOT be adopted, and certainly not before completing the threshold steps for any rulemaking. 1/11
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Week 1: @POTUS denounced debanking and said that America would be a crypto capital. He then issued an EO with a Crypto Czar, a Crypto working group, regulatory compatibility and dollar-backed stablecoins. Oh and a pardon for Ross, a @SECGov Crypto Task Force led by @HesterPeirce.
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Don't want to read our entire 78-page brief in our Third Circuit suit against the SEC? Just read this to understand how broken the Commission's approach has been.
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When CB filed to go public in 2021, our S1 described our business in much detail, including 57 references to staking and details on our asset listing process. The SEC approved us to go public, knowing those details. Now they have changed their mind on what is allowed. 3/15.
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We don’t have the full letters yet, but what we’ve seen so far speaks volumes. Take a look for yourself. In the meantime, we’ll keep pushing to get clarity from our regulators through FOIA requests and any other means necessary. 3/3
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The truth is that today there is no clear rule book from the SEC on crypto, and efforts to engage with the SEC are met with silence or enforcement actions. They have not followed a good faith rulemaking process with industry, as required under the APA. 10/15.
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Mr. Deaton is exactly right. “Investment contracts” must include both “investment” and “contracts” as those terms are set out by Congress and interpreted by the Supreme Court. Neither is present when it comes to secondary sales of digital assets.
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There’s never been a serious question that assets on @coinbase are safe. We have more than $6B in the bank, are financially strong, and have legal and operational protections for customers to invest, access, and withdraw their crypto.
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We appreciate the Third Circuit’s careful attention to this issue. Some may dismiss this as a small or obscure request that we’ve made to the court. But it matters not just to our industry – this is core to the proper working of government agencies and the way they engage with.
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