The Cryptocurrency Exchange Coinbase forces the U.S. Department of Justice to walk the state crypto level of implementation after federal regulators have left their case against the company earlier this year.
In a 14-page letter sent Monday to the Department of Justice (DOJ), head of legal legal officer Paul Grewal Says Federal officials should take action in response to the state level implementation directed against cryptocurrency companies. According to Grewal, the DOJ should encourage Congress to “step and make extensive preemption provisions.”
“When Oregon can sue us for legal services under federal law, something is broken,” Says Grew in a post of Tuesday x. “This is not federalism-this is what the government runs.”
The letter followed a April lawsuit From Oregon Attorney General Dan Rayfield, who is said to be Coinbase selling unregistered security to state residents – claims similar to those in a federal case previously brought by the Securities and Exchange Commission (SEC).
After Sec It dropped its lawsuit in FebruaryMany other United States security agencies have followed, including those in Vermont, South Carolina and Kentucky.
According to Rayfield, the individual state of the US is “must fill the vacuum of implementation left by federal regulators who surrendered under the new administration and abandoned important cases.”
Related: Oregon AG’s lawsuit against Coinbase calls XRP not registered security
In response to Oregon’s lawsuit, Coinbase filed to get the case heard by a federal judge. The case was transferred to the US District Court for the Oregon district in June.
The company also filed his own lawsuit In the state court against Oregon Governor Tina Kotek in July, allegedly changing the policy to crypto “took place behind closed doors,” without “public hearing, debate, and final action” in the legislature. The lawsuit is scheduled for a status check hearing on October 29th.
Congress is still moving forward with market structure
Amid Oregon and Coinbase cases, lawmakers on the US banking committee are expected to immediately obtain a law in law to establish a digital asset market structure.
The bill is expected to clarify the duties of US financial regulators, the SEC and Commodity Futures Trading Commission (CFTC), beyond the regulation and implementation of the crypto.
“The department must submit a letter of perspective that encourages Congress to adopt extensive preemption provisions on any market structure law,” Grewal said.
“Any provision of preemption should identify regulated digital assets controlled by the state’s blue sky laws, clearly that new state licenses and other state regulatory regulatory requirements do not apply to Crypto mediators, and apply retroactively,” Grewal said.
While Coinbase is currently faced with no active federal cases, the company filed a motion Last week at a request to the Freedom of Information Act involving text messages from the former SEC Chair Gary Gensler.
The exchange filed more than one request for SEC information in the middle of a 2023 civil implementation action – likely Looking for evidence Around its factors in carrying a case against a crypto company due to alleged security.
Cointelegraph reached the Oregon’s lawyer’s office for comment on the Coinbase letter, but did not receive a response at the time of publication.
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