Coinbase urges DOJ to block state-level cryptocurrency enforcement actions

PANews reported on September 17 that according to Cointelegraph, Coinbase is pushing the U.S. Department of Justice to intervene in state regulatory enforcement of cryptocurrencies. In a 14-page letter to the Justice Department on Monday, its Chief Legal Officer, Paul Grewal, stated that federal officials should take action regarding state regulatory enforcement of cryptocurrency companies, and that the Justice Department should urge Congress to "intervene and enact broad preemption provisions."

On Tuesday, Grewal posted on the X platform, bluntly stating that Oregon's lawsuit against Coinbase for providing services legal under federal law demonstrates a problem, not federalism but rather government misconduct. He added that states should fill the gap left by federal regulators abandoning oversight under the new administration. Grewal also suggested that the Department of Justice submit an opinion letter clarifying that the preemption clause in congressional legislation clarifies that federally regulated digital assets are not subject to state blue sky laws, that new state licensing and other regulatory requirements do not apply to cryptocurrency intermediaries, and that the clause be retroactive.