US-based crypto exchange Coinbase has made a significant appeal to the Department of Justice (DOJ) regarding a wave of lawsuits aimed at its operations. The company is urging federal action to address what it describes as an “increasingly fragmented and hostile” regulatory landscape for the crypto market.
Coinbase argues that these initiatives have begun to mitigate the adverse effects of the previous Administration’s enforcement-driven regulatory approach.
The letter affirms that the suit not only targets Coinbase but also encourages other states to address what the Attorney General perceives as a regulatory gap left by federal authorities.
Coinbase has faced cease-and-desist orders from four states, which demand the company halt its retail staking services. These orders are deemed by Coinbase as “legally unfounded and inconsistent.”
Coinbase contends that the current patchwork of state regulations not only disrupts market efficiency but also leads to unequal access to cryptocurrency services based on geographic location.
Additionally, the company urges the SEC to expedite rulemaking and provide clearer guidance on why digital asset transactions and services, including staking, should not be classified as securities. Such clarity would help prevent states from imposing conflicting regulations based on their interpretations of securities laws.
Featured image from Shutterstock, chart from TradingView.com
