Coinbase urges DOJ to press Congress for broad preemption provisions to block state blue‑sky laws, arguing federal clarity is needed so crypto services lawful under federal rules aren’t subject to conflicting state securities enforcement.
Coinbase seeks federal preemption of state securities laws for crypto intermediaries.
Coinbase filed motions and lawsuits to move state cases into federal courts and challenge state enforcement.
Since the SEC dropped its suit, several states including Oregon, Vermont, South Carolina and Kentucky have pursued related claims.
Coinbase urges DOJ to demand federal preemption for crypto, stopping state blue‑sky enforcement and clarifying market‑structure law — read latest developments and legal actions.
Coinbase’s chief legal officer urged federal officials to push Congress for preemption language in a pending market‑structure bill to prevent conflicting state “blue‑sky” enforcement against crypto firms.
What is Coinbase asking the DOJ to do about state enforcement?
Coinbase urges DOJ to submit a views letter urging Congress to adopt broad preemption provisions in any market‑structure legislation, so federally regulated digital assets and crypto intermediaries are exempt from state blue‑sky laws and state licensing requirements.
‘,
‘
🚀 Advanced Trading Tools Await You!
Maximize your potential. Join now and start trading!
‘,
‘
📈 Professional Trading Platform
Leverage advanced tools and a wide range of coins to boost your investments. Sign up now!
‘
];
var adplace = document.getElementById(“ads-bitget”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex;
adplace.innerHTML = adscodesBitget[adsindex];
sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBitget”, sessperindex);
}
})();
Why does Coinbase call state actions “state blue‑sky laws”?
Coinbase argues that when states sue for conduct that is legal under federal standards, the result is regulatory fragmentation. Paul Grewal, Coinbase Chief Legal Officer, framed the issue as state enforcement filling a perceived federal enforcement gap after the SEC dropped its suit earlier this year.
How have state and federal actions unfolded so far?
After the SEC dismissed its federal enforcement action in February, several states moved to bring similar claims. Oregon Attorney General Dan Rayfield filed suit alleging unregistered securities sales. Coinbase responded by seeking federal court jurisdiction and filing a separate state‑court suit against Oregon’s governor.
What specific preemption language does Coinbase want?
Grewal recommended three elements: characterize federally regulated digital assets as exempt from state blue‑sky laws; clarify that new state licensing requirements do not apply to crypto intermediaries; and apply preemption retroactively to pending and future cases.
When could Congress act on market‑structure legislation?
The Senate Banking Committee is expected to move forward on a digital asset market‑structure bill soon. That legislation aims to define the roles of the SEC and CFTC in digital‑asset regulation and could include preemption language if lawmakers accept DOJ or industry recommendations.
‘,
‘
🔒 Secure and Fast Transactions
Diversify your investments with a wide range of coins. Join now!
‘,
‘
💎 The Easiest Way to Invest in Crypto
Dont wait to get started. Click now and discover the advantages!
‘
];
var adplace = document.getElementById(“ads-binance”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBinance”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBinance.length) : sessperindex;
adplace.innerHTML = adscodesBinance[adsindex];
sessperindex = adsindex === adscodesBinance.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBinance”, sessperindex);
}
})();
Coinbase has: (1) asked for removal of the Oregon case to federal court; (2) filed suit against Oregon Governor Tina Kotek alleging behind‑closed‑doors policy changes; and (3) pursued Freedom of Information Act requests with the SEC seeking communications tied to prior enforcement decisions.
Preemption language in federal law can limit state securities claims over federally regulated digital assets, but scope depends on statutory drafting and judicial interpretation. Congress must clearly state intent to preempt state blue‑sky statutes.
Coinbase says state lawsuits are an attempt to fill an enforcement vacuum left by federal regulators and that unilateral state actions cause inconsistent rules for nationwide crypto services.
Coinbase’s appeal to the DOJ highlights a growing clash between state enforcement and federal regulatory clarity. Coinbase urges DOJ to advocate for statutory preemption so crypto firms face uniform rules nationwide. Watch for action from the Senate Banking Committee and the final market‑structure bill language.
‘
];
var adplace = document.getElementById(“ads-htx”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexHtx”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesHtx.length) : sessperindex;
adplace.innerHTML = adscodesHtx[adsindex];
sessperindex = adsindex === adscodesHtx.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexHtx”, sessperindex);
}
})();