While federal regulators are backing off the crypto industry under orders from the Trump administration, some state regulators are stepping up. Oregon Attorney General Dan Rayfield has filed a case against Coinbase seeking to “fill the enforcement vacuum” left by Trump’s SEC.
![State regulators
While federal regulators are backing off the crypto industry under orders from the Trump administration, some state regulators are stepping up. Oregon Attorney General Dan Rayfield has filed a case against Coinbase, saying that he believes “states must fill [the] enforcement vacuum being left by federal regulators who are abandoning these cases under [the] Trump administration”. The lawsuit makes similar allegations as the original SEC case, but under Oregon state securities laws.35 Coinbase is predictably furious, with Coinbase’s Chief Legal Officer and designated Twitter attack dog Paul Grewal tweeting that “This type of political jockeying is an embarrassing waste of Oregon taxpayer dollars.”36 I can certainly think of some wasteful and embarrassing political jockeying, but it’s not happening in Oregon.
A judge has denied most of DCG’s arguments in the company’s motion to dismiss a lawsuit from the New York Attorney General over the losses of its now bankrupt Genesis subsidiary, related to its partnership with Gemini. Two claims were dismissed as duplicative, but the majority of the case will be allowed to proceed as the judge has found that the NYAG had adequately argued at this stage that the Gemini Earn lending program was a security.37 At the federal level, the portion of an SEC case against Gemini has been paused pending “potential resolution” [I81]. The portion targeting Genesis had already been settled in March 2024 with a $21 million penalty [I50]](/proxy/post_attachment/484557/d070f863cf.png "State regulators
While federal regulators are backing off the crypto industry under orders from the Trump administration, some state regulators are stepping up. Oregon Attorney General Dan Rayfield has filed a case against Coinbase, saying that he believes “states must fill [the] enforcement vacuum being left by federal regulators who are abandoning these cases under [the] Trump administration”. The lawsuit makes similar allegations as the original SEC case, but under Oregon state securities laws.35 Coinbase is predictably furious, with Coinbase’s Chief Legal Officer and designated Twitter attack dog Paul Grewal tweeting that “This type of political jockeying is an embarrassing waste of Oregon taxpayer dollars.”36 I can certainly think of some wasteful and embarrassing political jockeying, but it’s not happening in Oregon.
A judge has denied most of DCG’s arguments in the company’s motion to dismiss a lawsuit from the New York Attorney General over the losses of its now bankrupt Genesis subsidiary, related to its partnership with Gemini. Two claims were dismissed as duplicative, but the majority of the case will be allowed to proceed as the judge has found that the NYAG had adequately argued at this stage that the Gemini Earn lending program was a security.37 At the federal level, the portion of an SEC case against Gemini has been paused pending “potential resolution” [I81]. The portion targeting Genesis had already been settled in March 2024 with a $21 million penalty [I50]")
Stablecoin bills have hit a little turbulence in Congress, with Coinbase now actively fighting against a standalone stablecoin bill and various people expressing concern that Trump’s crypto corruption could derail the industry’s desired legislation.
![In Congress
Congress is still working on stablecoin regulation, though it’s not been without snags. I noted last issue that even Republican House Financial Services Committee Chair French Hill (AR) had noted that Trump’s crypto endeavors were “complicat[ing]” Congress’s work in passing stablecoin legislation.
Now there’s infighting among the crypto lobbyists pushing to get these new rules through Congress, with reports that Coinbase is trying to convince Congress to pump the brakes on standalone stablecoin bills in favor of passing one giant bill that would combine stablecoin and crypto market regulation changes. It seems that they’re concerned that goodwill for crypto is drying up somewhat in Congress, and their priority is a market structure bill that might definitively safeguard their company from the bigger threat of crypto assets being designated as securities. An anonymous source quoted by Decrypt explained their reasoning: “If we only do stablecoin, they think there might not be enough interest or appetite or time left to also do market structure.” According to the outlet, this is “causing friction in the tight-knit world of crypto policy” as the GENIUS Act approaches a floor vote [I79, 76].38 This is a sentiment shared by some outside of politics, with analysts from the major investment bank TD Cowen commenting that “political threats could intensify to the point where they become a threat to legislative and regulatory reforms for crypto”, citing controversy around](/proxy/post_attachment/484558/20a2579809.png "In Congress
Congress is still working on stablecoin regulation, though it’s not been without snags. I noted last issue that even Republican House Financial Services Committee Chair French Hill (AR) had noted that Trump’s crypto endeavors were “complicat[ing]” Congress’s work in passing stablecoin legislation.
Now there’s infighting among the crypto lobbyists pushing to get these new rules through Congress, with reports that Coinbase is trying to convince Congress to pump the brakes on standalone stablecoin bills in favor of passing one giant bill that would combine stablecoin and crypto market regulation changes. It seems that they’re concerned that goodwill for crypto is drying up somewhat in Congress, and their priority is a market structure bill that might definitively safeguard their company from the bigger threat of crypto assets being designated as securities. An anonymous source quoted by Decrypt explained their reasoning: “If we only do stablecoin, they think there might not be enough interest or appetite or time left to also do market structure.” According to the outlet, this is “causing friction in the tight-knit world of crypto policy” as the GENIUS Act approaches a floor vote [I79, 76].38 This is a sentiment shared by some outside of politics, with analysts from the major investment bank TD Cowen commenting that “political threats could intensify to the point where they become a threat to legislative and regulatory reforms for crypto”, citing controversy around")
@molly0xfff they wanted someone corrupt but he’s proving to be too corrupt for even their expectations. This is hilarious stuff.