Coinbase, the leading cryptocurrency exchange, has appealed to the US Office of Government Ethics to eliminate a rule that prohibits Securities and Exchange Commission (SEC) staff from owning cryptocurrencies. The Chief Legal Officer of Coinbase, Paul Grewal, argued that SEC staff must be able to hold and use cryptocurrencies to enhance their understanding of the technology and improve their ability to regulate it effectively. Grewal emphasized that in order to regulate technology, one must first comprehend it, and permitting SEC staff to hold crypto is crucial for developing the knowledge required to create viable regulatory frameworks for digital securities activity. The current rule, known as Legal Advisory 22-04, issued by the OGE, prevents SEC staff from dealing with cryptocurrencies and stablecoins as they are not considered “publicly traded securities” and do not qualify for an exception like stocks. Grewal highlighted that despite a directive from former US President Donald Trump to submit recommendations for crypto regulations, the SEC staff are still unable to utilize the technology they are tasked with regulating, creating a significant obstacle. He emphasized the importance of waivers for SEC staff, particularly those involved in the Crypto Task Force, to be able to use and evaluate cryptocurrencies to develop effective regulations. The former SEC Chair, Gary Gensler, known for his tough approach to crypto regulation, resigned in January 2021 after initiating numerous regulatory actions against crypto firms. Following his departure, the SEC has backed away from various lawsuits against crypto companies, including Coinbase, and has hinted at dropping enforcement actions against blockchain firm Dragonchain. The push by Coinbase to allow SEC staff to hold and use cryptocurrencies reflects a broader shift in regulatory attitudes towards the crypto industry.