• Coinbase’s Chief Legal Officer Paul Grewal has called out the SEC for their broad interpretation of digital assets.
• He argues that the Major Questions Doctrine, recently upheld by the Supreme Court in a student loan forgiveness case, applies to the SEC’s interpretation and restricts its authority.
• This appeal to the Supreme Court follows a string of polarizing decisions which have been criticized for being too conservative.
Coinbase Looks to Polarizing Supreme Court
Coinbase executive Paul Grewal has pointed to a recent Supreme Court case argument against SEC’s broad interpretation of digital assets. The SEC recently made some controversial rulings, which have been criticized as being too conservative. Grewal argued that agencies should not be granted power over major issues without clear congressional authorization, as established in a Supreme court decision on student loan forgiveness.
Major Questions Doctrine
Grewal highlighted the importance of the Major Questions Doctrine, which prevents agencies from making decisions on major issues without clear congressional authorization. He believes that this legal principle should be applied to the SEC’s interpretation of “investment contract” as it relates to digital assets. According to him, this would significantly reduce its authority over all digital assets other than Bitcoin, due to lack of enforceable rights between enterprises and purchasers.
SEC’s Polarizing Decisions
The call for this legal principle follows a series of polarizing decisions made by the Supreme Court that have been met with criticism from those on the left who view them as overly conservative rulings. For instance, in one such decision, web designers were protected when refusing service to same-sex weddings due to religious objections.
Grewal’s challenge could potentially limit or even remove power from government agencies like the SEC when it comes to regulating digital asset markets and investments. His aim is for Congress to address this issue through legislation rather than leaving regulation up to unelected officials at government agencies like the SEC
In conclusion , Coinbase executive Paul Grewal has challenged the SEC’s broad interpretation of digital assets by appealing it through a legal principle upheld by recent Supreme Court cases . If successful , his challenge could limit or even remove power from government agencies when it comes to regulating these markets and investments .