Crypto News: Coinbase’s Legal Hurdle, Moonpay CEO on Stablecoin

The crypto market space is very dynamic, and events remain unpredictable, not just in price action but also in other aspects.

Despite the recent positive shift in regulatory disposition towards crypto assets in the U.S., a recent development suggests that Coinbase might face legal enforcement.

Coinbase CLO Slams Oregon Lawsuit as Politically Driven

In anupdate shared with the community on X, Paul Grewal, Coinbase’s Chief Legal Officer (CLO), hinted at a possible legal showdown.

According to Grewal, Coinbase will fight any misguided lawsuit that any agency or government decides to institute against it.

Notably, Grewal’s comments follow a lawsuit the Oregon Attorney General filed against Coinbase. He has described the lawsuit as “resurrecting the dead.”

As per the exchange’s CLO, Oregon’s Attorney General is restarting a legal case that the U.S. Securities and Exchange Commission (SEC) had already dismissed.

Interestingly, the SEC dismissed the case with prejudice, implying that it cannot be reopened. That is, the legal case against Coinbase has been dropped for good.

However, Grewal has alleged that the case is politically motivated and not legally justified.

According to him, the Oregon Attorney General’s office claimed the case was on the same legal grounds that former SEC Chair Gary Gensler prosecuted it and later dropped it.

As per the SEC’s statement, the case against Coinbase was dropped to allow the agency’s Crypto Task Force to reform its regulatory approach. It was not because the case was lacking in merit.

Nonetheless, Grewal insists that it is a waste of taxpayers’ money. He reaffirmed that Coinbase has a strong legal case and remains ready to fight any new lawsuit.

The CLO has also assured users that the exchange remains committed to operating normally in Oregon.

MoonPay CEO Advocates for Balanced Stablecoin Rules

Meanwhile, ahead of the proposed U.S legislation around stablecoins, Ivan Soto-Wright, the CEO ofMoonPay, has written to Congress.

In his letter, Soto-Wright argues that stablecoins like USDC will thrive under transparent regulations.

He maintains that this will ensure trust and stability without favoring centralized banking systems.

In his letter, Soto-Wright supported the move from the Conference of State Bank Supervisors (CSBS) to continue overseeing digital assets.

However, he called for a balance between protecting consumers, encouraging innovation, and maintaining a level playing field.

Soto-Wright says the GENIUS Act and STABLE Act should not favor large institutions that can afford federal oversight.

Overall, Soto-Wright advocates for an inclusive and balanced stablecoin legislation from Congress.

This will ensure that both state-regulated and federally controlled stablecoin issuers have the same chance to operate under fair rules.

Federal vs. State Stance Reveals Regulatory Disarray

These crypto market developments from Coinbase have sparked concerns regarding the crypto landscape in the U.S. and whether it is improving.

The Oregon Attorney General’s recent lawsuit against Coinbase highlights ongoing state aggression towards crypto assets.

However, on the other hand, federal efforts signal significant improvement. There has been strong bipartisan momentum for stablecoin legislation.

The stablecoin bills aim to standardize rules and balance consumer protection with innovation. Senators Cynthia Lummis and Kirsten Gillibrand have championed the bill.

With the divergence in stance between state and federal regulation, critics have argued that work remains to align positions for a better crypto space.