Coinbase Lawyer Takes Aim at “Scapegoating” SEC, After Positive FinCEN Letter

Businesses in the cryptocurrency industry have often been maligned for their alleged involvement in facilitating the movement of illegal funds. However, publicly traded cryptocurrency company Coinbase has found itself on the right side of the coin, chief legal officer Paul Grewal recently shared on X (formerly Twitter).

The company received a congratulatory letter from the Financial Crimes Enforcement Network (FinCEN) for its “substantial contribution” of information that helped the agency nail one of its seven award-winning crime cases in the past year.

FinCEN is an arm of the United States Department of Treasury and is responsible for analyzing financial transactions throughout the banking system. Its focus is on identifying and stopping illegal transactions, such as those used for money laundering and terrorism financing.

While the agency did not name the specific case for which it recognized Coinbase, it praised the exchange for its “financial integrity efforts.” FinCEN also recognized that Coinbase’s efforts, coupled with other firms that received the congratulatory letter, helped protect the U.S. financial system.

Coinbase Chief Legal Officer Takes Aim at U.S. SEC

Paul Grewal, Coinbase’s chief legal officer, seized the occasion of celebrating Coinbase’s congratulatory letter from FinCEN to take aim at the United States Securities and Exchange Commission (SEC). Recall that Coinbase is currently facing a lawsuit from the SEC over claims that its operations violated securities law.

Earlier this month, a federal court denied Coinbase’s motion to dismiss the case, paving the way for the SEC to drive its agenda. Coinbase, on its part, has vehemently denied the allegations and often called out the SEC for its supposed wrong “regulation by enforcement” approach.

Alluding to the SEC, albeit without naming his target, Grewal praised Coinbase’s compliance and government investigations as the best in the business. He added that the team does not abide by any culture of lawlessness, “notwithstanding the slurs and misrepresentations of those who prefer scapegoating over solutions.”

Our compliance and government investigations teams are the best in the business. They do not abide any culture of lawlessness, not withstanding the slurs and misrepresentations of those who prefer scapegoating over solutions.

— paulgrewal.eth (@iampaulgrewal) April 11, 2024

Notably, Coinbase is not the only firm currently facing an SEC lawsuit. Other firms, such as Ripple, Kraken, Binance, and potentially Uniswap, all have ongoing legal cases with the U.S. securities regulator, a trend that the industry has sought to end by staying its course.