Coinbase urges the U.S. Department of Justice to take action to stop state-level cryptocurrency enforcement actions

ChainCatcher news, according to Cointelegraph, Coinbase is pushing the U.S. Department of Justice to intervene in state regulatory enforcement of cryptocurrencies.

Its Chief Legal Officer Paul Grewal stated in a 14-page letter to the Department of Justice on Monday that federal officials should take action regarding state regulatory enforcement against cryptocurrency companies, and the Department of Justice needs to urge Congress to "intervene and establish broad priority provisions." On Tuesday, Grewal posted on the X platform, directly stating that Oregon's lawsuit against Coinbase, based on services legal under federal law, indicates a problem; this is not federalism but government overreach, as states are trying to fill the regulatory void left by federal regulators under the new administration's abandonment of oversight.

Grewal also suggested that the Department of Justice should submit an opinion letter to clarify that the priority provisions in congressional legislation should specify that federally regulated digital assets are not subject to state blue sky laws, and that regulatory requirements like New Jersey licensing do not apply to cryptocurrency intermediaries, with the provisions having retroactive effect.