According to CoinDesk, Coinbase’s Chief Legal Officer, Paul Grewal, emphasized the need for bipartisan support for crypto policy in the U.S. during an interview at the Asia Blockchain Summit in Taipei. Grewal expressed concern that crypto could become a partisan issue, potentially hindering its growth and development. He highlighted the importance of modernizing policies and moving away from outdated frameworks like the Howey Test, which was developed in the context of an Orange Grove real estate in Florida in the 1940s and 50s. Grewal argued that applying the Howey Test “blindly and mechanically” to blockchains and crypto does not make practical sense.

Grewal praised Asia’s approach to crypto regulation, noting that regulators in the region are writing rules from the ground up and listening to industry feedback. He cited Hong Kong’s digital asset license framework and the allowance of crypto ETF issuers to offer in-kind redemptions as examples of progressive regulation. Grewal found it inspiring that Asian regulators focus on discrete issues rather than ideology, showing an interest in understanding the technology and learning from industry experiences.

In contrast, Grewal noted that it has been challenging to have meaningful dialogue with large parts of the U.S. government regarding crypto and policy. However, he remains optimistic as both major political parties in the U.S. are beginning to recognize the significance of crypto. Grewal concluded by stating that crypto is essentially code, and there should be common ground on understanding its function and operation, despite other political disagreements.