- Oregon’s lawsuit echoes the SEC’s dropped case, targeting Coinbase’s unregistered crypto sales.
- Oregon claims Coinbase sold high-risk assets, leading to financial losses for consumers.
- SEC drops its case against Coinbase, prompting Oregon to pursue state-level enforcement.
Oregon Attorney General Dan Rayfield initiated securities enforcement proceedings against Coinbase, which operates as the primary crypto exchange in the United States. The suit follows federal charges the Biden administration initially filed in early 2022 before officials dropped them earlier this year.
Rayfield filed documents to accuse Coinbase of permitting Oregon residents to buy unregistered cryptocurrencies because these assets could involve fraud and pump-and-dump schemes.
Rayfield stated that Coinbase won the trust of Oregon consumers before offering unverified high-risk investments, which led to investors’ financial losses. The legal complaint accuses the company of improper conduct because it did not register the cryptocurrencies available on its platform according to state regulations.
The Oregon Attorney General’s office deems that consumer protection requires Coinbase to face consequences because these actions create potential customer risks.
The case arose following withdrawals from the U.S. Securities and Exchange Commission (SEC), which dropped its lawsuit against Coinbase in February about its unregistered broker exchange and clearing agency operations. The SEC expressed worry about the staking service Coinbase operates.
The Changing Regulatory Landscape for Crypto
The application initiates during a transformation period in cryptocurrency exchange regulatory governance. Under President Donald Trump’s administration, the SEC made significant modifications regarding crypto regulation tactics. Since taking the leadership position, SEC Chair Gary Gensler has adopted an aggressive strategy to classify most cryptocurrencies as securities.
The SEC initiated multiple enforcement actions, starting with Coinbase as one of its targets. In recent months, the SEC has decided to terminate its investigations of OpenSea, Kraken, ConsenSys, and Uniswap.
Chief Legal Officer Paul Grewal from Coinbase has criticised Oregon’s actions during the lawsuit against the company. The lawsuit functions as an obstacle that infringes upon the advancement of cryptocurrency industry operations. Grewal emphasised that federal agencies have minimised enforcement actions while Oregon chose independent action, which threatens to confuse the industry landscape.
Federal Crypto Legislation and State-Level Enforcement
The combined regulatory confusion has prompted Washington representatives to advocate for digital asset laws. The crypto industry needs defined regulations because lawmakers from both major parties now support passing new legislation. Congress is working on two pieces of legislation that oversee stablecoins and establish general guidelines for cryptocurrency regulation. Lawmakers are finalising legislation quickly, hoping to develop complete legislation by August 2025.
The company’s attorneys maintain that the domestic cryptocurrency sector will face difficulties developing due to the actions that states like Oregon take through legal pursuit. They advocate for federal legislation, which would establish specific rules and stop states from implementing political regulations through their own independent policies. Currently, bipartisan support grows for federal crypto regulation, while officials strive to establish uniform rules against ongoing obstacles.
