In letters made public on 25 April 2025, representatives from Coinbase argued that the current restrictions hinder the SEC’s ability to properly regulate digital assets.
Under Legal Advisory 22-04, issued by the OGE on 4 July 2022, SEC employees are barred from buying, selling, or using cryptocurrencies and stablecoins. The advisory justifies the prohibition on the basis that these digital assets are not classified as ‘publicly traded securities’ and therefore do not qualify for the same exceptions afforded to stocks.
A representative from Coinbase stated that for SEC staff to develop effective regulation, practical experience with the technology is necessary. They added that allowing staff to engage with crypto assets would provide essential insights into the systems they are tasked with regulating.
Coinbase officials also addressed the matter directly with the newly appointed SEC Chair and the agency’s commissioners, emphasising that the restriction presents a major obstacle for the SEC’s Crypto Task Force. They noted that although the SEC has been directed by the US President to contribute to a comprehensive regulatory proposal for crypto within 90 days, its personnel remain unable to use the very technology they are tasked with evaluating.
While the OGE holds authority over rescinding the advisory, Coinbase suggested that the SEC itself could take interim steps. One proposal included issuing waivers to staff working on crypto-related matters, which, according to Coinbase, would be consistent with measures used in similar advisory contexts.
The representative pointed out that issuing targeted waivers would enable task force members and other relevant staff to directly engage with blockchain technologies, enhancing their regulatory proposals.
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