After federal regulators recently stepped back from pursuing Coinbase, the state of Oregon has moved in to take up the mantle. Attorney General Dan Rayfield filed a new lawsuit accusing the cryptocurrency exchange of violating state securities laws by allowing the sale of digital assets that were not properly registered.
The case claims Coinbase failed to assess the risks these assets posed to consumers and argues that the company’s conduct left Oregon investors exposed without adequate protections contributing to what the Attorney General views as a significant gap in regulatory oversight.
A New Legal Battle for Coinbase
The Oregon Attorney General’s move came weeks after the U.S. Securities and Exchange Commission (SEC) dismissed its lawsuit against Coinbase. That dismissal followed a prior ruling from the U.S. District Court for the Southern District of New York, which had determined that the SEC’s claims were sufficient to move forward.
However, the SEC’s abrupt decision to drop the case, paired with internal personnel changes, including the reassignment of the agency’s top crypto litigator, Jorge Tenreiro, signaled a broader shift in federal enforcement priorities.
In light of this perceived retreat by federal regulators, Oregon has now stepped forward with its claims. The complaint argues that the crypto assets identified in the SEC’s original case, along with others, are being sold illegally to state residents.
Coinbase CLO Criticizes Complaint’s Omissions
Coinbase Chief Legal Officer Paul Grewal reacted publicly to the complaint, highlighting what he described as glaring omissions and questionable motivations. In a post on X, Grewal pointed to Section 9 of the lawsuit as telling.
He noted that the complaint fails to reference Judge Torres’s 2023 decision in the Ripple case, which concluded that XRP is not inherently a security, a ruling widely seen as a landmark moment for the crypto sector.
We finally got a copy of the Oregon AG complaint. If there were any doubt about the motivation behind it, look no further than section 9, where it 1) omits Judge Failla’s order granting interlocutory appeal of the @SECGov case; 2) omits any mention of Judge Torres’ decision in… pic.twitter.com/mIXxtQ7ojH
— paulgrewal.eth (@iampaulgrewal) April 18, 2025
The complaint also excludes any mention of Judge Failla’s decision to allow an interlocutory appeal in the SEC’s case against Coinbase. Furthermore, Grewal criticized the involvement of two private law firms in drafting the lawsuit, as well as language within the complaint that refers to the new SEC chairman as a “crypto lobbyist” and condemns the reassignment of former SEC enforcement staff to other departments. Grewal suggests the suit is politically motivated rather than rooted in a genuine concern for investor protection.
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Coinbase Prepares to Defend Its Position
Despite the renewed legal pressure, Coinbase maintains that the company is operating within legal bounds. Grewal emphasized that Coinbase is confident in both the facts of the case and its legal standing and is prepared to challenge the lawsuit in court.
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