Oregon Sues Coinbase Over Unregistered Securities, Despite SEC Dismissal

Coinbase Faces New Legal Battle in Oregon Over Securities Allegations

Coinbase, a leading cryptocurrency exchange, is facing a new lawsuit from Oregon, accused of promoting unregistered securities. This follows the SEC’s recent dismissal of a similar case, highlighting the complex regulatory landscape for cryptocurrencies.

• Oregon sues Coinbase over unregistered securities.
• SEC previously dismissed similar lawsuit against Coinbase.
• Paul Grewal labels Oregon’s action as “meritless.”
• Trump administration signals a crypto-friendly environment.

On April 18, 2025, the Oregon Attorney General launched a legal battle against Coinbase, alleging the cryptocurrency exchange has been promoting the sale of cryptocurrencies as unregistered securities, in violation of state securities law. This action comes shortly after Coinbase breathed a sigh of relief when the U.S. Securities and Exchange Commission (SEC) dismissed a similar lawsuit with prejudice in February. “With prejudice” means the case cannot be brought back, but Oregon seems determined to keep the regulatory heat on.

Coinbase’s chief legal officer, Paul Grewal, didn’t hold back in his response, calling the lawsuit “desperate” and a revival of “regulation by enforcement” – a strategy where regulators set rules through legal action rather than creating them beforehand. Grewal took to social media to vent his frustration:

“Today the Oregon Attorney General is resurrecting the dead by bringing a copycat case of @SECGov’s enforcement action against Coinbase. As a reminder, the SEC dismissed that case with prejudice. This type of political jockeying is an embarrassing waste of Oregon taxpayer dollars.”

This legal move by Oregon reflects a broader trend of state-level regulatory scrutiny against cryptocurrency exchanges. Despite a shift in federal policy under the Trump administration, which has promised to support the crypto industry, states like Oregon are not backing down. Under the previous Biden administration, the crypto sector felt the pressure from regulatory crackdowns spearheaded by then-SEC Chair Gary Gensler. However, with President Trump’s crypto-friendly policies, the SEC has taken a more accommodating stance, even establishing a new crypto task force to provide clearer rules for the industry.

Yet, the Oregon lawsuit underscores a potential disconnect between state and federal approaches to regulating cryptocurrencies. While the federal landscape becomes more welcoming, state-level actions like Oregon’s suggest a continued skepticism and a willingness to challenge crypto platforms. Oregon Attorney General Dan Rayfield emphasized his commitment to protecting Oregon’s investors:

“Our office remains dedicated to ensuring compliance with state securities laws to safeguard our investors.”

In this ongoing dance between regulation and innovation, Coinbase finds itself navigating the tricky waters of state and federal expectations. As the industry watches closely, the outcome of this lawsuit could set a precedent for how states might regulate cryptocurrencies moving forward, particularly as federal guidelines become more defined and supportive.

Here are key questions and takeaways for our readers:

• What is the Oregon lawsuit against Coinbase about?

  The Oregon lawsuit alleges that Coinbase has promoted the sale of cryptocurrencies as unregistered securities, violating state securities law.

• How did Coinbase respond to the Oregon lawsuit?

  Coinbase’s chief legal officer, Paul Grewal, criticized the lawsuit as “meritless” and a continuation of “regulation by enforcement,” vowing to vigorously defend against the charges.

• What was the outcome of the SEC’s lawsuit against Coinbase?

  The SEC dismissed its lawsuit against Coinbase with prejudice in February, signaling a shift in federal regulatory approach under new leadership.

• How has the regulatory environment for cryptocurrencies changed under the Trump administration?

  Under President Trump, the regulatory environment has become more supportive of the crypto industry, in line with his campaign promises to foster its growth.

• What is the purpose of the SEC’s new crypto task force?

  The SEC’s new crypto task force aims to develop clear regulatory frameworks for the cryptocurrency sector, addressing its fast-paced and complex nature.

As this saga continues to unfold, the crypto community remains cautiously optimistic. The balance between fostering innovation and ensuring investor protection is a delicate one, with Coinbase at the center of this regulatory storm. It seems like Coinbase can’t catch a break, even when the feds are playing nice – it’s like playing regulatory Whack-a-Mole, with states popping up when the feds duck down.