- Oregon’s lawsuit resembles a dismissed SEC case, reigniting legal battles over Coinbase’s digital asset offerings.
- Coinbase argues the case ignores federal progress toward legislative clarity and relies on outdated enforcement theories.
- Despite easing federal pressure, states like Oregon can independently pursue crypto regulation under their own securities laws.
Oregon’s Attorney General has filed a new lawsuit against Coinbase, accusing the crypto exchange of violating state securities laws. The case centers on claims that Coinbase promoted and sold digital assets considered unregistered securities in Oregon. State officials allege that the platform earned millions in fees while Oregonians faced steep losses.
This state level action arrives months after the U.S. Securities and Exchange Commission dismissed a similar federal lawsuit against Coinbase with prejudice. Now, Coinbase says Oregon is reviving a legal fight already resolved at the federal level, raising concerns over state-federal alignment.
A “Copycat” of SEC’s Dropped Case?
According to Paul Grewal, Coinbase’s Chief Legal Officer, Oregon is “resurrecting the dead” by copying the SEC’s previously dismissed enforcement case. He stated that the SEC’s case was dropped with prejudice, meaning it cannot be refiled.
Grewal claims the Oregon Attorney General’s office openly admitted it was continuing where the SEC had left off. The legal battle, according to Coinbase, reflects outdated theories that no longer align with federal regulatory direction.
Coinbase argues that such actions disregard recent policy momentum in Washington toward establishing digital asset regulations through legislation instead of enforcement.
Action Aims to Protect Oregon Investors
Oregon Attorney General Dan Rayfield stated that his office filed the case to protect residents from financial harm in volatile crypto markets. He accused Coinbase of profiting from Oregonians’ losses and operating in a system “stacked against them.”
Despite the federal government easing pressure on crypto firms recently, states retain authority to pursue independent enforcement under their own securities laws. Oregon’s case shows this autonomy, even as federal regulators recalibrate their approach to crypto oversight.
Lawsuit Undermines Bipartisan Progress in DC
Coinbase emphasized that the lawsuit could disrupt ongoing federal efforts to craft clear regulations for digital assets. The company said bipartisan support in Congress is closer than ever to passing meaningful legislation.
However, state level actions, according to the company, may slow that progress. Grewal said the SEC had finally recognized that most digital assets are not securities. Yet, Oregon’s lawsuit ignores this shift and reuses claims already rejected in court.
He added that Coinbase will continue to operate normally in Oregon and is prepared to fight the case through all legal channels. The SEC’s crypto task force has now shifted focus to building clarity instead of litigation. Nonetheless, Oregon’s decision shows the legal uncertainty across state and federal lines.
