Coinbase Pushes Federal Regulators To Intervene To Block State Crypto Enforcement Actions
The top US-based crypto exchange platform by trading volume is asking the Federal government to step in and stop Oregon from taking enforcement actions against it.
In a new thread on X, Coinbase’s chief legal officer, Paul Grewal, says that Oregon is suing them for services that are legal under federal law, asking the President, the US Department of Justice, and Congress for help.
“When Oregon can sue us for services that are legal under federal law, something’s broken. This isn’t federalism – this is government run amok. We just sent a letter to the Justice Department urging federal action on crypto market structure to remedy this.
It’s been obvious for a long time that the current patchwork of state laws isn’t just inefficient – it slows innovation and harms consumers. The executive branch and Congress need to act now.”
In its letter, Coinbase says that Oregon’s lawsuit is seeking to revive the U.S. Securities and Exchange Commission (SEC) enforcement campaign against the digital assets industry.
“Just like the SEC under prior leadership, these States are ‘proceed[ing] with ex post enforcement without announcing ex ante rules or guidance,’ in a situation where ‘old regulations fit poorly with… new technology.'”
According to Coinbase, digital asset providers appear to be subject to regulations state by state, making them have to appease 50 different regulators rather than just one – a situation that could be remedied via legislation.
“The pending crypto market-structure bills offer an opportunity to correct course. Those bills include provisions preempting contrary state laws requiring registration. Both the House CLARITY Act bill and the Senate discussion draft would amend 15 U.S.C. § 77r (NSMIA) to make federally regulated digital assets a ‘covered security’ exempt from state blue-sky laws.”
According to Coinbase, other states – such as California, New York, Maryland, New Jersey and Maryland – are also taking enforcement actions against it.
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