Coinbase CLO Paul Grewal resigns, COIN slips 0.6% to $158

Coinbase Global Inc. Chief Legal Officer Paul Grewal resigned July 8, effective July 31, as the crypto exchange navigates ongoing enforcement battles with the Securities and Exchange Commission.

The company expects to appoint Molly Abraham, currently vice president of legal, as general counsel and secretary following Grewal's departure, Coinbase said in a filing.

Grewal entered into an advisory agreement with Coinbase on July 8, under which he will assist with the transition through Oct. 31 in exchange for a lump-sum payment equal to three months of his base salary. He will also continue vesting restricted stock units scheduled to vest Aug. 20 during the advisory period, the filing shows.

Grewal's departure removes a key figure from Coinbase's legal team at a time when the exchange faces multiple SEC enforcement actions that could reshape how digital asset platforms operate in the US. The company's stock closed at $158.44 on July 9, down 0.58 percent.

Abraham, who joined Coinbase in 2021 as a senior legal director, has overseen the company's litigation and regulatory strategy in recent years. Her appointment points to continuity in Coinbase's legal approach as the exchange prepares for a potential Supreme Court ruling on crypto securities classification.

The leadership change comes as Coinbase challenges the SEC's authority to regulate digital asset tokens as securities, a case filed in June 2023 that could set precedent for the US crypto industry. A ruling is expected later this year. Rival exchanges including Binance and Kraken face similar regulatory pressure, with the SEC pursuing parallel enforcement actions across the sector.

Grewal, a former federal magistrate judge for the Northern District of California, joined Coinbase in 2020 and became the public face of the company's legal defense. He argued in court appearances that existing securities laws do not adequately address digital assets and that the SEC overstepped its authority by targeting Coinbase's operations.

This article is for informational purposes only and does not constitute investment advice.