Coinbase Seeks Federal Clarity on Conflicting Crypto Rules

Coinbase, a leading crypto exchange, has asked the U.S. Department of Justice (DOJ) to step in and fix the problem of clashing state and federal rules for the crypto industry.

In a recent letter, the company urged federal authorities to create clear national guidelines so U.S. states cannot introduce rules that go against federal law. 

Coinbase Spotlights Challenges From State-Level Regulations

In the letter, Coinbase’s Chief Legal Officer (CLO), Paul Grewal, explained that crypto companies face significant challenges from fragmented state regulations. He described many state rules as overly broad and inconsistent with federal law. 

These conflicting rules create uncertainty for businesses and can slow the growth of the industry. The company’s executive stressed that having one set of rules across the country is important to help the crypto industry grow and to keep consumers safe.

Furthermore, in its letter to the DoJ, Coinbase requested that federal authorities encourage Congress to enact legislation that would allow federal rules to take priority over conflicting state regulations. 

The company pointed to pending legislation, such as the drafted CLARITY Act and the Responsible Financial Innovation Act of 2025. It noted that these measures could help create consistent rules for the cryptocurrency industry. 

Coinbase Battles Oregon Over Conflicting Crypto Regulations

Coinbase cited the ongoing case in Oregon as a key example of the problem. In April, Oregon’s Attorney General filed a securities enforcement action against the crypto exchange. The platform argued that Coinbase promoted the sale of unregistered crypto assets in the state. 

This lawsuit followed the U.S. Securities and Exchange Commission’s (SEC) decision to dismiss its own case against Coinbase. 

The agency had earlier accused the company of operating as an unregistered broker, exchange, and clearing agency. Oregon’s Attorney General stated that states need to enforce regulations where federal authorities have not acted.

In response to the Oregon lawsuit, Coinbase took steps to move the case to a federal court. In June, the company asked the U.S. District Court for the District of Oregon to hear the matter. Additionally, in July, Coinbase filed a state court lawsuit against Oregon Governor Tina Kotek. These lawsuits show the company is trying to deal with confusing rules and get clear guidance from the courts.

Coinbase Pushes for Clear Rules to Build an “Everything Exchange”

Coinbase’s letter comes as part of its bigger plan to grow beyond regular crypto trading. The company has been making notable strides in its push to become an “everything exchange.” The platform is poised to offer many types of assets and financial services. 

For Coinbase, building an exchange that includes crypto, tokenized securities, and other financial products will not work if each state sets its own rules. Uniform federal regulations would give the stability and certainty needed to create and launch new services on a large scale.