Despite SEC scrutiny, Coinbase is considering Base Token; Paul Grewal comments

News Desk5
3 Min Read

Coinbase is facing its biggest legal challenge yet, as the Securities and Exchange Commission (SEC) has turned a hawkish eye on the exchange. Any wrong move at this stage could be fatal.

Coinbase has so far made a good stand, contesting the SEC’s allegations with full momentum. The company is continuing to operate business as usual, and its legal chief, Paul Grewal, has said that they are open to having a Base Token in the future. However, their immediate focus is on driving technological developments at Base.

This raises the question: why is Coinbase rushing to launch Base without clear regulatory guidelines, especially when the SEC has said that it will be conducting additional scrutiny? Is it a bold move to gain investor faith, or is there something else at play?

Paul Grewal’s Perspective

In a recent interview, Paul Grewal, Coinbase’s legal chief, cheered the company’s decision for early adoption of Base Network and the potential for further development.

Base Network is built on the OP Stack, a Layer-2 solution developed by the Optimism network, which has its native token, $OP. When asked about the potential Base Token and how it aligns with Coinbase’s situation regarding the SEC, Grewal kept the door open, saying that it could be possible in the future. However, he emphasized that their primary focus right now is on technological advancements. This is quite a bold move, considering their earlier stance of not launching a base network without SEC clarity.

Regulatory Challenges Continue to Haunt

Coinbase’s failure to register with the US SEC as an exchange, broker-dealer, and clearing firm adds to the regulatory concerns. Grewal has stated that they are open to collaborating with the SEC to clarify the crypto industry. Coinbase has also launched an advocacy campaign for a US crypto bill to prove its stance. However, this has so far had little impact on the Base price.

Base Network Is Thriving

Despite the regulatory challenges, Base Network has grown substantially, securing the ninth position in total value locked (TVL) among DeFi protocols. As per statistics, Base Network’s DeFi protocols have accumulated deposits of $370.50 million, surpassing Solana’s $310.25 million. This growth is attributed to increased activity on the Web3 social media platform and the integration of notable DeFi applications into the blockchain.

Coinbase Has Some Ambitious Plans in Place

Coinbase is promoting Base as a bridge for users entering the crypto economy, offering a user-friendly on-chain experience with access to products on various chains. The exchange remains committed to enhancing Base’s interoperability with other chains and supporting various chains across Coinbase products. However, the regulatory waters remain uncertain, casting a shadow on Coinbase’s ambitious plans for Base Network.

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