Coinbase Global Inc. will push for legislative solutions on crypto rules as it fights a lawsuit by the Securities and Exchange Commission alleging that the company operates an unregistered securities exchange, the firm’s chief legal officer said, Bloomberg News reported. “Even as we’re managing the litigation, we are equally eager to engage in pressing legislative solutions,” Paul Grewal said at an investor conference Monday. “We think the court could and should rule that the case lacks legal merits and that will be the end of it.” If the court disagrees, the case will then proceed through discovery and potentially to a trial, Grewal said. In the meantime, he said he’s hopeful draft legislation addressing the issue will advance in the U.S. House of Representatives by the end of the summer. The SEC last week widened its crackdown on the crypto industry through a one-two punch against the biggest firms, Binance Holdings and Coinbase. The SEC alleged that Coinbase acted as an exchange, broker-dealer, and clearinghouse all without registering with the agency for any of those roles. Coinbase has denied the allegations, but analysts have said the case will be a significant overhang over the crypto exchange’s business.
