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Advocacy Beyond AAA: Complaint about Coinbase to Your Elected Officials

  • A central issue underlying many disputes involving cryptocurrency exchanges is the uneven and incomplete enforcement of existing regulatory frameworks. At the federal level, cryptocurrency regulation remains fragmented, and enforcement priorities have shifted over time depending on administration policy and agency focus. As a practical matter, during the current period, certain federal laws applicable to cryptocurrency exchanges are not being actively or uniformly enforced, particularly as they relate to consumer protection, platform oversight, and operational safeguards.
  • This does not mean that such laws do not exist, nor does it mean that exchanges are exempt from legal obligations. Rather, it reflects a regulatory environment in which federal oversight has been inconsistent, leaving significant gaps in enforcement. In that vacuum, the responsibility for regulating cryptocurrency exchanges has increasingly fallen to the states. State regulators, attorneys general, and financial services departments have become the primary actors charged with protecting consumers and policing misconduct in this space.

Complaint to New York State about Coinbase

  • Among the states, New York occupies a uniquely important position. New York has adopted one of the most comprehensive and demanding regulatory regimes for cryptocurrency businesses in the United States. Through the New York State Department of Financial Services (NYDFS), the state requires certain virtual currency businesses to obtain what is known as a BitLicense. This licensing regime imposes substantive requirements relating to capitalization, cybersecurity, anti-money laundering controls, consumer disclosures, recordkeeping, and ongoing supervision.
  • The BitLicense framework reflects New York’s policy judgment that cryptocurrency exchanges function, in many respects, like financial institutions and should therefore be subject to heightened regulatory scrutiny. Unlike more permissive regimes, the BitLicense is not a one-time approval. Licensees are subject to continuing oversight, examination, and compliance obligations. Failure to adhere to those obligations can result in enforcement actions, penalties, or license revocation.
  • Because of this structure, New York law and New York regulators play an outsized role in shaping standards of conduct for cryptocurrency exchanges nationwide. Even exchanges that operate across the United States often structure their compliance programs around New York requirements, given the state’s market size and regulatory influence. When federal enforcement is limited or uneven, New York’s regulatory framework frequently becomes the de facto baseline for consumer protection in the cryptocurrency sector.
  • From an advocacy perspective, this reality has important implications for consumers. It underscores why state-level enforcement and state-law claims matter, particularly in jurisdictions like New York that have taken an active role in regulating cryptocurrency exchanges. It also highlights the need for continued scrutiny, enforcement, and public accountability at the state level when federal oversight is insufficient or delayed.
  • More broadly, the current regulatory landscape places a disproportionate burden on individual consumers to vindicate their rights through private actions, including arbitration. When regulatory enforcement is weak or inconsistent, private disputes become one of the few mechanisms through which systemic issues are exposed and addressed. In that sense, individual claims do not merely seek personal redress; they also serve a broader accountability function in an evolving and under-regulated industry.
  • If you or someone you know wants to complain about Coinbase you should contact the New York State Department of Financial Services, regardless of whether you live in New York State. You can contact them by calling (800) 342-3736 or email consumers@dfs.ny.gov

How to your Member of Congress about Coinbase

  • Consumers should consider submitting complaints and policy concerns to both of their United States Senators and their Member of the U.S. House of Representatives. Senators represent their entire state and play a key role in federal legislation and oversight, while House members represent individual congressional districts and often serve as the first point of contact for constituent concerns. Communicating with all three offices ensures that concerns are registered at multiple levels of federal representation.
  • Contacting elected officials serves several purposes. It creates a documented record of constituent harm, informs lawmakers of real-world consequences of regulatory gaps, and helps shape legislative priorities. In the context of cryptocurrency exchanges, such communications are particularly relevant where existing federal statutes, such as the Electronic Fund Transfer Act, do not clearly address digital assets or custodial cryptocurrency platforms.
  • Every U.S. resident is represented by two U.S. Senators and one U.S. House member based on their state and congressional district. Official government resources make it relatively straightforward to identify these representatives. To identify your U.S. Senators, you may visit the official Senate website at www.senate.gov, which provides a searchable directory by state. To identify your U.S. House member, you may visit www.house.gov and use the “Find Your Representative” tool, which allows you to search by ZIP code.
  • One of the issues that you should address with your federal elected officials is the U.S. Department of Justice’s April 7, 2025 memorandum concerning the enforcement of certain laws, including the Bank Secrecy Act and the United States Patriot Act against cryptocurrency exchanges. Because of this policy, companies like Coinbase are free to break the law federally because they are assured that there will be no consequences. Here is a copy of the memorandum.

Federal Laws That Should be Modernized to Include Cryptocurrency

  • Several federal statutes affect how cryptocurrency disputes are handled today. Many were written before cryptocurrency exchanges existed and do not clearly address modern digital-asset risks. As a result, consumer protections can be incomplete or unclear.

1.Electronic Fund Transfer Act (EFTA).

  • The EFTA protects consumers from unauthorized electronic fund transfers involving banks and traditional financial institutions by limiting liability and requiring prompt investigations. However, the statute does not clearly apply to cryptocurrency exchanges or digital-asset transactions. Amending the EFTA to expressly include cryptocurrency exchanges would clarify consumer rights in cases involving fraud, account compromise, and unauthorized transfers.

2.Bank Secrecy Act (BSA) and Anti-Money Laundering laws.

  • Cryptocurrency exchanges are subject to certain AML and reporting obligations, but the scope and enforcement of these duties can vary. Clarifying statutory requirements related to transaction monitoring, suspicious activity reporting, and customer harm could strengthen accountability when consumers suffer losses linked to illicit activity or security failures.

3.Federal securities laws.

  • The Securities Act of 1933 and the Securities Exchange Act of 1934 govern securities transactions, but their application to digital assets remains unsettled. Legislative clarification could define when exchanges owe disclosure, custody, and compliance duties to retail customers, reducing uncertainty and reliance on case-by-case enforcement actions.

4.Computer Fraud and Abuse Act (CFAA).

  • The CFAA addresses unauthorized access to computer systems, but it was enacted long before consumer-facing digital financial platforms became common. Updating the statute could better reflect modern account-takeover schemes and clarify remedies for consumers harmed by cyber intrusions affecting exchange accounts.

Tips For Complaining to Elected Officials about Coinbase

  • When contacting your elected officials about losses suffered through Coinbase, it is important to frame your experience in a way that is factual, restrained, and human. Begin by clearly explaining who you are, where you live, and that you are a constituent. Describe your loss in concrete terms: what happened, when it happened, and the financial and personal impact it had on you or your family. Emphasize that you acted in good faith as a consumer using a widely advertised, regulated cryptocurrency platform, and that you relied on representations about security, compliance, and customer protections. Avoid technical jargon at the outset; focus instead on the real-world consequences of the loss, including financial stress, disruption to savings, retirement plans, or basic financial stability.
  • You should then explain why your situation reflects a broader policy problem rather than an isolated incident. Note that current federal laws were written before cryptocurrency exchanges existed and do not clearly protect consumers when digital assets are stolen, misdirected, or accessed without authorization. Explain that arbitration clauses, limited discovery, and liability waivers often prevent meaningful accountability, leaving individual consumers to bear losses that would be treated very differently in traditional banking contexts. Stress that you are not seeking special treatment, but parity, protections comparable to those that apply to debit cards, wire transfers, and other electronic financial systems.
  • Finally, ask for specific, reasonable action. Request that your representative support legislation that updates consumer-protection laws to address cryptocurrency exchanges, strengthens cybersecurity and disclosure obligations, and ensures that consumers have meaningful remedies when things go wrong. If appropriate, ask them to raise oversight concerns with relevant regulators or committees. Keep the tone respectful and constructive. Elected officials are more likely to engage when the message conveys sincerity, fairness, and a clear connection between individual harm and the need for systemic reform.

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Advocacy Beyond AAA: Complaint about Coinbase to Your Elected Officials

  • Complaint to New York State about Coinbase
  • How to your Member of Congress about Coinbase
  • Federal Laws That Should be Modernized to Include Cryptocurrency
  • Tips For Complaining to Elected Officials about Coinbase