In a surprising move that has reignited the regulatory debate around cryptocurrency, the Oregon Attorney General has filed a lawsuit against Coinbase, alleging the exchange operated as an unregistered securities platform and offered staking services without proper registration. The complaint closely mirrors the U.S. Securities and Exchange Commission’s (SEC) now-dismissed case from 2023.
A Revival of Federal Claims?
The state-level action has sparked criticism, especially considering the SEC voluntarily dismissed its lawsuit against Coinbase in February 2025, marking a shift in the federal stance on crypto enforcement under the Trump administration. The SEC’s original case, filed in June 2023, accused Coinbase of enabling the trading of at least 13 unregistered securities and running an unlicensed staking program.
In response to Oregon’s move, Coinbase Chief Legal Officer Paul Grewal posted a sharp rebuke on social media, calling the lawsuit a “copycat case” and a “waste of Oregon taxpayer resources.” Grewal argued that Oregon was attempting to resurrect a matter the federal government had already chosen to drop, and warned that such actions could undermine Congressional efforts to establish consistent national legislation for digital assets.
“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,” Grewal stated on X.
Federal Retreat, State Persistence
The lawsuit highlights a growing divide in the United States between state and federal approaches to crypto regulation. While the federal government under the current administration has shifted toward a more collaborative and transparent rulemaking framework, states like Oregon continue to exercise their regulatory autonomy.
Earlier this year, Acting SEC Chair Mark Uyeda announced the formation of a Crypto Task Force, pivoting away from the aggressive enforcement strategy of previous leadership. The goal, Uyeda said, is to develop clearer guidelines for digital asset regulation, signaling a more constructive stance from Washington.
Despite this shift, state attorneys general still possess the authority to pursue enforcement under their own securities laws adding complexity to the legal landscape for companies like Coinbase that operate across jurisdictions.
Coinbase Pushes Back
Coinbase has made it clear that it intends to vigorously defend itself against Oregon’s lawsuit. The company maintains that its operations are compliant with U.S. law and continues to argue that most digital assets traded on its platform do not meet the definition of securities.
The company has also been an active participant in policy discussions at both state and federal levels, advocating for clear, uniform rules that would allow the crypto industry to grow while protecting consumers.
“What’s needed is national clarity, not conflicting rules from 50 states,” said Grewal in a follow-up statement.
Broader Implications
Oregon’s legal action underscores a persistent issue in U.S. crypto regulation: the lack of federal preemption when it comes to digital assets. With no comprehensive national framework in place, individual states can and do step in with their own interpretations and enforcement priorities.
For companies like Coinbase, this creates a patchwork of regulatory risks that complicate compliance and innovation. And for crypto investors, it signals that the battle over how and by whom digital assets are regulated is far from over.
Final Thoughts
As Coinbase prepares to fight another courtroom battle, the Oregon lawsuit serves as a reminder of the ongoing power struggle between state and federal regulators in shaping the future of digital finance. With Congress working on bipartisan crypto legislation and the SEC stepping back from its combative posture, Oregon’s move may not just be a legal challenge—it could also become a political flashpoint in the broader crypto policy debate.
