April 28, 2025 — In a strong push for regulatory reform, Coinbase is calling on the U.S. Office of Government Ethics (OGE) to end a rule that bans SEC employees from owning or trading cryptocurrencies.
The current rule, known as Legal Advisory 22-04, was introduced back in July 2022. It bars SEC staff from buying, selling, or using crypto assets, including stablecoins. The justification? Crypto isn’t officially considered a “publicly traded security,” meaning it doesn’t qualify for the same exemptions that stocks do.
However, Coinbase believes this restriction is doing more harm than good. In newly public letters dated April 25, 2025, the crypto exchange argued that without first-hand experience with digital assets, SEC staff are at a disadvantage when it comes to creating fair and effective crypto regulations.
“If regulators can’t use the technology, how can they regulate it properly?” a Coinbase representative pointed out.
A Major Roadblock for the SEC’s Crypto Task Force
Coinbase didn’t stop there. The company also raised concerns directly with the new SEC Chair and agency commissioners. They warned that the crypto ownership ban is a major obstacle for the SEC’s newly formed Crypto Task Force, which has just 90 days to help the White House craft a comprehensive crypto regulatory plan.
The irony? The team responsible for shaping the future of crypto regulations isn’t even allowed to personally interact with the technology.
To help fix this, Coinbase suggested a simple solution: issue targeted waivers for staff working on crypto-related issues. This would allow them to engage with blockchain systems without violating ethics rules—similar to exceptions made in other financial advisory areas.
The Bigger Picture
This move by Coinbase highlights a growing tension in Washington over how to regulate crypto effectively. As digital assets become more mainstream, ensuring regulators truly understand the space they’re overseeing is becoming a hot topic.
Whether or not the OGE will lift the ban remains to be seen, but one thing is clear: Coinbase is putting serious pressure on regulators to rethink outdated rules—and fast.
