Coinbase Submits Request to Allow SEC Staff to Hold Digital Assets

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Paul Grewal, Coinbase’s Chief Legal Officer, publicly criticized the SEC’s controversial policy prohibiting staff from holding or using digital assets in a April 25, 2025 tweet that sparked immediate market reaction.

At 10:15 AM UTC, Grewal questioned the rationale behind Legal Advisory 22-04, calling on the Office of Government Ethics to revoke and revise what he characterized as an outdated restriction while seeking exemptions for the SEC’s Crypto Task Force.

The cryptocurrency markets responded within hours to this challenge to regulatory norms. Bitcoin climbed 1.2% from 67,800to67,800to68,615 on Binance by 11:00 AM UTC, while Ethereum gained 0.8% to 3,250.

The market movements coincided with on-chain indicators showing strengthened investor positions. Glassnode data revealed a 3.5% increase in Bitcoin wallets holding at least 0.1 BTC by noon UTC, suggesting growing confidence among retail holders.