State of Oregon Sues Coinbase in Crypto Asset Registration Dispute

Highlights:

• According to a new filing, Oregon has sued Coinbase for violating the state’s Securities law.
• The US state Attorney General accused Coinbase of approving unregistered assets on its platform.
• Coinbase’s actions allegedly culminated in huge losses for Oregonian customers.

Oregon has filed a new lawsuit against America’s leading crypto exchange, Coinbase. In a recent court document, the American state’s Attorney General Dan Rayfield accused the exchange of violating state securities laws. He also alleged that Coinbase aided the sales of unregistered cryptocurrencies to Oregon citizens.

Lawsuit Details

According to the latest filing, Coinbase amassed millions of dollars in fees from Oregonians who suffered devastating losses from the exchange’s risky offerings. “After building trust with Oregon consumers, Coinbase sold high-risk investments without them being properly vetted to protect consumers,” Rayfield alleged.

The attorney faulted Coinbase for approving unregistered cryptocurrencies for trading on its platform. These unregistered assets, vulnerable to pump-and-dump schemes, have led to huge losses for Oregonian investors. While traders suffered significant losses, Rayfield noted that promoters of these unregistered assets profited due to limited transparency.

🚨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

The attorney cited an example using the cryptocurrency Internet Computer Protocol (ICP), which the SEC had identified as an unregistered asset. Within one month of its listing on Coinbase, ICP plunged from $700 to $72. Currently, ICP trades around $7, reflecting a 99% drop from its previous high.

Oregon lawsuit comes a few weeks after the US Securities and Exchange Commission (SEC) dismissed its court case against Coinbase and reassigned the attorney championing the lawsuit to the SEC’s IT office. Rayfield argued that states must step in where federal regulators have failed to act. He claimed that federal bodies have bowed to pressure under the new administration, pushing them to dismiss important cases.

Coinbase’s CLO Reacts, Calls the Lawsuit a Waste of Taxpayer Dollars

Paul Grewal, Coinbase’s Chief Legal Officer (CLO), reacted to the lawsuit via recent X posts. He said the Oregon attorney’s new court filing resurrected a dead case. “As a reminder, the SEC dismissed that case with prejudice. This type of political jockeying is an embarrassing waste of Oregon taxpayer dollars,” the CLO stated.

In a follow-up tweet, Grewal argued that the new lawsuit does not address Americans’ consumer priorities. He emphasised that the US is nearing bipartisan crypto legislation, making the lawsuit untimely. Furthermore, Grewal affirmed Coinbase’s readiness to contest the lawsuit and clear its name of all allegations. He added that the exchange remains open to business for its Oregon customers.

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

Coinbase’s Previous Court Case Dismissals

After Coinbase announced that the SEC had agreed to end the lawsuit against it in February, several US states dropped their legal disputes against the exchange. On March 13, Vermont announced its plans to withdraw its show cause order against Coinbase via a court order. While the case dismissal was mutual, it was without prejudice, allowing the state to reopen the lawsuit if necessary.

On March 27, Coinbase’s CLO announced that South Carolina also agreed to end its staking legal dispute against the exchange. The court case termination was with no admission of guilt, enabling South Carolinians to access Coinbase’s staking platform. Meanwhile, on April 1, Crypto2Community reported that Kentucky has joined fellow US states in terminating its staking lawsuit against Coinbase.