Coinbase Advocates for SEC Policy Reform to Strengthen Crypto Market Understanding

In a bold move to enhance regulatory clarity, Coinbase has petitioned the SEC to lift restrictions preventing staff from trading non-security cryptocurrencies. The exchange contends this change is vital for effective oversight of the rapidly evolving digital asset landscape.

Coinbase Urges SEC to Revoke Crypto Trading Ban for Staff to Enhance Regulatory Oversight

Coinbase has formally requested the U.S. Securities and Exchange Commission to rescind its prohibition on staff engaging in cryptocurrency transactions involving assets not classified as securities. The exchange argues this restriction hampers regulators’ ability to comprehend and govern the digital asset market effectively.

In an April 22 letter to SEC Chair Gary Gensler and the U.S. Office of Government Ethics, Coinbase Chief Legal Officer Paul Grewal contended the policy creates regulatory blind spots. The appeal comes as federal agencies face a 180-day deadline to submit recommendations for maintaining U.S. leadership in digital finance, per a recent executive order.

The move signals growing institutional recognition that firsthand crypto market experience could inform more nuanced policymaking. Regulatory personnel currently operate under constraints that private sector counterparts don’t face, potentially creating knowledge gaps in oversight frameworks.

Coinbase Resolves UX Glitch That Falsely Flagged Security Alerts

Coinbase has rectified a user interface malfunction that erroneously displayed failed password attempts as two-factor authentication failures. The glitch, which mislabeled account activity logs, led users to believe their accounts were under attack when passwords were simply entered incorrectly.

The fix underscores how subtle UX improvements can bolster user trust in cryptocurrency platforms. Cybersecurity experts note that such interface issues, while seemingly minor, may contribute to broader adoption barriers by eroding confidence in security measures.

Lawrence Abrams of BleepingComputer first identified the misleading error messages. The resolution demonstrates Coinbase’s responsiveness to user experience concerns in an industry where security perceptions directly impact platform adoption.