Coinbase Faces Another Lawsuit from Oregon Attorney General
In a turn of events mirroring the Securities and Exchange Commission’s (SEC) case from 2023, the Oregon Attorney General has now filed a like-for-like action against the popular cryptocurrency exchange, Coinbase. The central accusation underpinning the lawsuit is that Coinbase has been operating as an unauthorized securities platform, offering staking services without the necessary registration, making the storyline an echo of the prior litigation brought forward by the SEC.
State Response Following Federal Dismissal
Interestingly, the Oregon lawsuit springs into action in the wake of the U.S. Securities and Exchange Commission’s decision to dismiss its federal lawsuit against Coinbase in February 2025. This development has raised eyebrows and attracted criticism from industry observers and insiders alike, who have characterized it as a case of needless ‘political jockeying’ that wastes the taxpayer’s money.
SEC’s Accusations Against Coinbase
To recall, the SEC had commenced a case against Coinbase in June 2023, wherein the cryptocurrency platform was accused of facilitating the trade of an estimated 13 different crypto tokens that were declared as unregistered securities. Also, it was further alleged that Coinbase operated an unregistered staking scheme. However, the SEC’s lawsuit did not hold water and was ultimately dismissed, marking a significant volte-face in the federal regulatory approach under the Trump administration, which has signalled an intention for a more transparent and cooperative framework for digital assets.
Coinbase Faces a Copycat Lawsuit
Commenting on the recent turn of events, Paul Grewal, the Chief Legal Officer of Coinbase, criticized the Oregon lawsuit, labelling it as a mere reproduction of the SEC’s prior action. As per Grewal, the arguments put forth in the lawsuit by Oregon are merely rehashed points that the federal agency has long since abandoned. He further stressed that such state-level lawsuits could pose a serious obstruction to the ongoing bipartisan efforts in Congress aimed at instituting widespread federal legislation for digital currencies.
SEC’s Reassessment on Cryptocurrency Enforcement
Moving away a bit, it’s germane to note that the SEC’s earlier dismissal of its case against Coinbase sits in the context of a larger reevaluation process of its enforcement strategies relating to cryptocurrencies. In fact, Acting SEC Chair Mark Uyeda announced the formation of a Crypto Task Force for the very purpose of creating clear regulatory guidelines and disassociating from the enforcement-centric approach, a strategy that characterized the operations of the previous administration.
Coinbase’s Stand in the Face of the Lawsuit
Even as federal authorities pivot toward a more lenient approach towards cryptocurrency regulations, Oregon’s action brings to sharp focus the complexities of cryptocurrency regulation in the United States, where there may exist a divergence between state and federal jurisdictions. However, Coinbase retains a bullish stance, pledging to robustly contest the lawsuit. The company maintains it has always conducted its operations in full compliance with the current law and argues that the majority of digital assets should not be categorized as securities.
