Coinbase's legal officer, Paul Grewal, hopes Trump’s win could lead to a much more balanced approach that encourages open dialogue rather than aggressive enforcement. Senator Cynthia Lummis is also still pushing for a national Bitcoin reserve, and plans to capitalize on the potential Republican Senate majority to drive pro-crypto legislation. Meanwhile, CySEC extended its suspension of FTX’s European arm once again, and Binance publicly denied claims of demanding token allocations for listings after an online debate about exchange listing fees.
SEC Urged to Embrace Innovation After Trump’s Victory
Paul Grewal, Coinbase's chief legal officer, called on the United States Securities and Exchange Commission (SEC) to reconsider its regulatory stance on cryptocurrency in the wake of Donald Trump’s recent election victory. Grewal hopes that the SEC will shift towards a framework that places a lot more focus on open dialogue and innovation rather than aggressive litigation. Grewal is one of many in the crypto industry who feel constrained by the SEC's current enforcement-focused approach.
Luckily, Trump’s win introduced the possibility of some big changes at the SEC, especially considering his pledge to remove SEC Chair Gary Gensler. During his campaign, Trump repeatedly shared his plans to dismiss Gensler. He also criticized Gensler’s leadership under what he described as the “anti-crypto crusade” of the Biden-Harris administration.
This potential shakeup at the SEC could have far-reaching effects on the regulatory landscape for cryptos in the United States. Under Gensler, the SEC took legal action against major players in the crypto industry, including Coinbase and decentralized exchange Uniswap. This fueled uncertainty for companies operating without clear regulatory guidance, and Grewal and others in the industry believe that this uncertainty could finally be addressed through clearer rulemaking.
Speculation is also growing around who might succeed Gensler. Some in the crypto community hope for a much more supportive regulator. Hester Peirce, an SEC commissioner who is very well known for her positive stance on crypto is a possible candidate. She was even dubbed “Crypto Mom” by the industry, and Peirce consistently advocated for a regulatory approach that supports innovation and clarity. She believes it will serve both the public interest and the United States' position in the global digital finance landscape.
Meanwhile, Coinbase finds itself in some hot water after allegations of exorbitant listing fees emerged. Justin Sun, the founder of Tron, recently claimed that Coinbased demanded $300 million to list the TRX token on its platform. Andre Cronje, the creator of the Fantom Network, also chimed in and stated Coinbase quoted listing fees for Fantom ranging from $30 million to $300 million.
For comparison, Cronje pointed out that Binance charges no listing fees. These statements also contradict Coinbase CEO Brian Armstrong when he said that listing assets on Coinbase is free.
Lummis Still Pushing for Bitcoin Reserve After Election
After the recent election, Wyoming Senator Cynthia Lummis also reaffirmed her commitment to establish a “strategic Bitcoin reserve” for the United States. She plans to move forward with the initiative if Republicans secure a majority in the Senate in 2025.
In a post on X, Lummis outlined her vision to establish a reserve by buying 1 million BTC, which is roughly 5% of Bitcoin’s total supply. This BTC would be held for at least two decades. Her plan builds on ideas from Donald Trump, who suggested that the US government hold onto seized Bitcoin assets rather than selling them.
With Republicans having flipped three Senate seats, a majority seems likely. This could give Lummis and her colleagues the votes needed to push out pro-Bitcoin legislation. Since joining Congress in 2021, Lummis has been a vocal advocate for digital asset policies. She was also part of the broader pro-crypto agenda that was pushed by Republicans during the 2024 campaign season. She was not up for re-election but still fights for the benefits of Bitcoin and blockchain technology as she believes they are essential to the United States’ financial future.
The election’s results caused a surge in crypto prices. Bitcoin even briefly topped $76,000. Alongside Trump’s projected win for the presidency and potential Republican control of both the Senate and House of Representatives, optimism around pro-crypto policies lifted market sentiment.
Some people believe it is very possible that the Democrats’ stance on crypto could have contributed to the party’s losses. Senator Sherrod Brown, a leading Democratic critic of crypto, was defeated by Republican Bernie Moreno. Paul Graham, co-founder of startup accelerator Y Combinator also believes the Democrats’ loss stemmed from their alienation of the crypto community.
Cyprus SEC Extends FTX EU Suspension
In other crypto regulation news, Cyprus' financial regulator, the Cyprus Securities and Exchange Commission (CySEC), extended the suspension of FTX's European arm by another six months. It is now set to last until May 30 of 2025.
CySEC extension announcement
The decision was announced on Nov. 5, and it prevents FTX EU from offering services, taking on new clients, or advertising, but allows the firm to process transactions and return funds to clients. This is the fourth time CySEC extended the suspension since it initially ordered FTX EU to stop operations on Nov. 11 of 2022 after FTX's declaration of bankruptcy in the United States.
FTX Europe operated as a regulated investment firm in the EU for only eight months before its license was suspended. CySEC did this due to concerns over the management’s suitability and client asset protection. The suspension also came after reports of a hack that drained roughly $600 million in crypto from FTX-linked wallets.
FTX Europe was recently sold back to its original owners after FTX's restructuring team argued that the acquisition price was excessively high. A legal dispute started because of this, but by February of 2024, FTX agreed to sell back the European division for $32.7 million. FTX Europe’s website no longer supports trading, and only offers a page for clients to check balances and request withdrawals. For clients who do not withdraw funds, the assets will be moved into a “client segregated account” for six years.
Binance Denies Token Demand Allegations
Coinbase is not the only exchange raising eyebrows at the moment. Binance co-founder Yi He also recently addressed allegations that Binance demanded a percentage of tokens from projects looking to list on the exchange.
The claim was originally made by the CEO of crypto advisory firm Moonrock Capital, which suggested that Binance required 15% of a project’s token supply to secure a listing. Yi He refuted the accusation publicly on X, and stated that Binance’s listing policy does not include a requirement for token percentages or a fixed fee amount. She clarified that Binance maintained a very transparent policy on listing fees since 2018.
The controversy started a broader debate on listing fees for centralized exchanges, which caused Andre Cronje to raise similar concerns about fees on Coinbase.
Meanwhile, centralized exchanges are facing increased competition from decentralized exchanges. In September of 2024, Binance’s spot trading volume fell by 23%. Other major exchanges, including OKX, Coinbase, and Kraken, also saw declines between 20-30%. Analysts attribute these drops to rising geopolitical tensions, investor uncertainty over the US election, and a shift in trading volume to decentralized platforms.
