Coinbase slams Oregon lawsuits as baseless revival of abandoned SEC claims

On April 18, Oregon Attorney General Dan Rayfield is reigniting legal action against Coinbase, echoing allegations previously dropped by the U.S. Securities and Exchange Commission (SEC). Rayfield, a Democrat, plans to accuse the crypto exchange of operating as an unregistered securities exchange and broker-dealer, and of offering unregistered securities through its staking program.

🚨NEW: Oregon Attorney General Dan Rayfield, a Democrat, has apparently informed @coinbase he plans to pick up where the SEC left off and pursue the exchange over charges of operating an unregistered securities exchange and broker-dealer. The state is also resurrecting the SEC’s… https://t.co/2BCWCSgQsr

— Eleanor Terrett (@EleanorTerrett) April 18, 2025

Coinbase’s Chief Legal Officer, Paul Grewal, did not hold back in his response to Oregon’s actions. “Today the Oregon Attorney General is resurrecting the dead by bringing a copycat case of the SEC’s enforcement action against Coinbase,” Grewal stated.

“As a reminder, the SEC dismissed that case with prejudice. This type of political jockeying is an embarrassing waste of Oregon taxpayer dollars.” He further labeled the lawsuit as “meritless” and affirmed that Coinbase “will do whatever is required to beat it.”

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…

— paulgrewal.eth (@iampaulgrewal) April 18, 2025

State vs. Coinbase: Oregon Picks Up Where the SEC Left Off

This accusation comes just two months after the SEC agreed to dismiss its lawsuit against Coinbase. The SEC’s decision to drop the case was seen as a shift towards more constructive engagement with the crypto sector, especially under the new Republican-led administration, which has shown a more favorable stance towards digital assets

The SEC’s original lawsuit, filed in June 2023, accused Coinbase of operating as an unregistered national securities exchange, broker, and clearing agency, and of failing to register its staking-as-a-service program. 

Copycat Charges or Political Play? Coinbase Faces Familiar Fight in New Arena

Coinbase has consistently argued that its operations do not fall under the SEC’s jurisdiction, emphasizing that the SEC had reviewed and approved its business model when the company went public in April 2021.

Grewal highlighted this point, stating, “The SEC reviewed our business model and S1 disclosures and allowed us to go public. Two years later, they sued us. That’s despite absolutely nothing changing in our business model.”

The revival of similar charges at the state level raises concerns about the fragmented regulatory landscape in the U.S. While the federal government appears to be moving towards clearer and more supportive crypto regulations, individual states like Oregon are taking independent actions that could create additional challenges for crypto companies operating nationwide.

As the legal proceedings unfold, the crypto industry will be watching closely to see how this state-level action impacts the broader push for regulatory clarity and the future of digital asset innovation in the United States.