Coinbase is urging the US Office of Government Ethics to abolish a restriction preventing SEC staff from owning cryptocurrencies, a move the company believes will enhance the SEC’s regulatory capabilities. This request comes as the SEC’s Crypto Task Force faces difficulties due to this ban, hindering staff’s engagement with the technology they regulate. Coinbase suggests that the SEC consider issuing waivers for staff involvement with crypto to improve oversight.
Coinbase has recently put forth a request for the United States Office of Government Ethics (OGE) to lift a ban that prevents SEC staff from owning cryptocurrencies. In communications made public on 25 April 2025, the representatives from Coinbase claimed that these current restrictions are hampering the SEC’s ability to regulate digital assets effectively.
The said ban originates from Legal Advisory 22-04, released on 4 July 2022, which prohibits SEC employees from transacting in cryptocurrencies or stablecoins. The advisory defends this limitation by stating that such digital assets do not meet the criteria for ‘publicly traded securities,’ hence lacking the same exemptions as traditional stocks.
A Coinbase representative highlighted that in order for SEC staff to craft relevant regulatory frameworks, gaining hands-on experience with the technology is crucial. They argue that allowing staff to own and trade these assets would yield vital insights into the very systems they oversee.
Moreover, Coinbase officials spoke directly with the recently appointed chair of the SEC and its commissioners about the issue, stressing that the ban presents significant hurdles for the SEC’s Crypto Task Force. They pointed out that, despite the directive from the US President to create a comprehensive regulatory proposal within 90 days, SEC personnel are restricted from using the technology they need to evaluate.
Although the OGE has the authority to rescind this advisory, Coinbase suggested that the SEC could take interim measures. They proposed that the SEC issue waivers to staff engaged in crypto-related projects, an approach that would align with strategies adopted in other advisory contexts. The representative noted that waivers would empower task force members and other relevant personnel to actively participate with blockchain technologies, thus improving their regulatory framework proposals.
