Five US states continue to follow lawsuits against the Coinbase deployment program, and the company managers claim that this creates barriers for users who want to earn rewards through the platform, for more than $ 90 million since 2023.
According to Coinbase’s Chief Legal Officer Paul Grewal, California, New Jersey, Maryland, Washington and Wisconsin maintain Active legal actions against the Coinbase deployment services from 25 April.
Four states, California, New Jersey, Maryland and Wisconsin, have issued cease and head assignments that prohibit Coinbase from offering new users in their areas of law. The state of Washington has a constant lawsuit, but there is no active ban.
The enforcement actions stem from allegations that the exposure services of Coinbase are non -registered securities offers.
The Crypto company disputed these allegations, which claim that setting services do not comply with the legal definition of securities. In February, the US Securities and Exchange Commission (SEC) rejected its postponement case against Coinbase with prejudice.
Illinois, Kentucky, South Carolina, Vermont and Alabama have also withdrawn similar lawsuits.
User impact and lost rewards
The Vice President of Coinbase of Legal, Paul Vangreck, estimates that since June 2023, residents of California, New Jersey, Maryland and Wisconsin have jointly missed more than $ 90 million in striking rewards.
In a April 25th articleInvolved Vangreck that the Stakten-the-and-Hoofdsbase against Coinbase were issued with the help of emergency procedures that have usually been reserved for cases of serious securities fraud, such as Ponzi schemes, which he claims is inappropriate for routine malfunction activities.
He said that the limitations influence the choice of consumers and contribute to regulatory uncertainty in the broader digital assets industry.
Vanggreck further emphasized that Coinbase works under extensive federal and national regulations. The company is registered with Fincen as a money services company, has 46 national licenses for money transmission and is traded listed in the US, subject to regular financial disclosures.
In addition, it enforces a security obligation that encloses users for losses in the unlikely case of a failure disturbance caused by Coinbase.
Aanggreck argued that the persistent lawsuits by the five states contradict the wider trend against regulatory clarity. He referred to constant efforts of the congress to set up an extensive digital assetar vein and noticed that supervisors, including the SEC, have shown movement in the direction of a more balanced approach.
Vanggreck added that courts are not the right location to decide on the establishment of policy and that officials chosen must be those who define the legal status of setting services.
Coinbase has promised to dispute the remaining lawsuits and to defend users’ access to the use of services.
