Coinbase Chief Legal Officer Paul Grewal warned that the United States is at risk of losing jobs, innovation, and investment in the cryptocurrency industry to other countries due to the lack of clear regulations.
On June 6th, Coinbase, Robinhood, and representatives from the United States commodities regulator are scheduled to testify before Congress regarding a newly proposed crypto bill. The purpose of the hearing is to gather insights and perspectives from these industry players on the proposed legislation, which includes the potential classification of certain crypto tokens as digital commodities.
Coinbase’s Chief Legal Officer, Paul Grewal, expressed his honor in testifying before the House Committee on Agriculture and sharing Coinbase’s views on the Digital Asset Market Structure Discussion Draft. This draft, released on June 2nd, is part of a broader effort by Republican congresspeople Patrick McHenry and Glenn Thompson to establish a statutory framework for digital asset regulation.
The aim is to bring clarity, fill regulatory gaps, foster innovation, and ensure consumer protections.
Other witnesses called to testify include former CFTC Chair Chris Giancarlo, former CFTC Commissioner Dan Berkvitz and FIAconnect founder Walt Lukken.
In a June 5th Twitter thread, Grewal gave a rundown of what his own testimony will focus on.
“The U.S. is falling behind. We cannot afford to ignore crypto while other markets take advantage of our absence, developing rules and regulations that enable the industry to thrive and risk sending jobs, investment, and technological leadership overseas,” Grewal noted, adding that:
“We need a clear rulebook in the U.S. to achieve the full promise of crypto. Until rules and laws are developed that reflect the realities of this new economic system, we cannot realize the full potential of making our financial system faster, fairer, and more affordable.”
In addition to Coinbase and Robinhood, the hearing will also feature testimonies from notable figures such as former Commodity Futures Trading Commission (CFTC) Chair Chris Giancarlo, former CFTC Commissioner Dan Berkvitz, and FIAconnect founder Walt Lukken. The presence of these industry experts reflects the significance of the proposed bill and the desire to gather diverse perspectives.
Coinbase’s positive reception of the draft bill is evident in Grewal’s statement, where he described it as a “thoughtful effort” and a major step forward. He also emphasized the importance of bipartisan collaboration and timely action from lawmakers.
It is worth noting that this hearing takes place shortly after the U.S. Securities and Exchange Commission (SEC) filed 13 charges against Binance, another prominent crypto exchange.