Coinbase Legal Chief Says SEC Needs To Approve Bitcoin ETF "Under The Law"

Coinbase chief legal officer Paul Grewal on Friday said he is confident about the approval of spot Bitcoin ETF by the U.S. Securities and Exchange Commission. Similar to other executives Mike Novogratz, Cathie Wood, and Larry Fink, Grewal also thinks the SEC’s loss against Grayscale in the court is significant for approval of a spot Bitcoin ETF.

Coinbase CLO Paul Grewal Says SEC Will Approve Spot Bitcoin ETF

Coinbase CLO Paul Grewal in an interview with CNBC said the SEC needs to approve spot Bitcoin ETF application under the law. While he didn’t say when as the decision completely depends upon the SEC, but he is confident about it.

“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law.”

Paul Grewal believes the U.S. Court of Appeals has made it clear that the SEC can’t reject Bitcoin ETF applications on an arbitrary or capricious basis. The court ruled in favor of digital asset management Grayscale’s bid to turn its huge GBTC bitcoin fund into an ETF. CoinGape Media reported that Grayscale has submitted an updated spot Bitcoin ETF filing.

The SEC has been blamed by federal judges for failing to give a reason for its actions against crypto firms. Now, the regulatory is cooperating with Bitcoin ETF applicants, indicating a spot Bitcoin ETF will come soon.

Coinbase Will Be Likely Beneficiary

Coinbase is likely to benefit from any Bitcoin ETF approval. The SEC just needs to follow the law and is required to apply the law in “neutral” to the applications. The SEC’s actions have significantly impacted the crypto trading volumes and investors.

Coinbase also seeks to dismiss the SEC lawsuit claiming the regulator has overstepped its authority for jurisdiction on regulating the crypto industry.

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