Oregon’s Attorney General Dan Rayfield planned a fresh legal challenge against Coinbase, just two months after the U.S. Securities and Exchange Commission (SEC) abandoned its own high-profile case against the crypto giant.
The lawsuit alleges Coinbase sold unregistered securities to Oregon residents, reigniting a fight many believed was settling down. While other states and the federal government appear to be backing off, Oregon is moving in the opposite direction, sparking concern over fragmented regulation and its impact on the wider crypto landscape.
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Oregon’s Legal Punch After SEC’s Retreat
The SEC officially dismissed its lawsuit against Coinbase in February 2025. That lawsuit had been a centerpiece of former SEC Chair Gary Gensler’s broader crackdown on crypto companies. After Gensler stepped down in January, a noticeable shift occurred in how federal regulators approached digital assets. Along with Coinbase, enforcement actions against Uniswap and Kraken were also dropped.
Read also: SEC Drops Uniswap, Robinhood and Coinbase Cases
Despite this shift, Oregon has taken a different path. Rayfield’s team is now pushing forward with a nearly identical case. Paul Grewal, Chief Legal Officer at Coinbase, referred to Oregon’s suit as a “copycat case,” echoing the now-abandoned federal charges.
States Fall Back, Oregon Leans In
As federal pressure on Coinbase faded, several states also pulled out of their lawsuits. Vermont was among the first, withdrawing its litigation on March 13. Citing the SEC’s change in regulatory approach and a newly formed federal crypto task force, Vermont reversed course.
South Carolina followed two weeks later, dropping its own case in late March. Kentucky joined shortly after, ending its legal pursuit on March 26.
Each of these moves suggested a growing consensus that crypto oversight required a more unified national policy, not a patchwork of state-level enforcement. But Oregon is not following the trend. Instead, Rayfield’s office is standing firm, pushing for what some see as regulatory overreach at the state level.
“No Lawsuit Is Harmless”
Coinbase’s leadership isn’t holding back in their criticism of the lawsuit. Grewal voiced frustration in a blog post published Friday, stating that the action “directly undermines constructive policymaking happening in DC.” He emphasized bipartisan momentum to craft national legislation that would support crypto innovation while reining in abuses.
“Coinbase will do whatever is required to beat it”
For Coinbase, the concern is not just about one lawsuit. Grewal warned that Oregon’s move represents a broader danger:
“Oregon’s holdout campaign is obstruction for the sake of obstruction. It is a desperate scheme that does nothing to move the crypto conversation forward.”
A Coin’s Crash, a Lawsuit’s Justification
Rayfield defended the state’s decision by pointing to a sharp collapse in the value of the Internet Computer Protocol (ICP) cryptocurrency. Once priced at $700 when it launched on Coinbase, the coin fell to $72 within one month and now sits around $7. This dramatic plunge, he argued, cost investors billions and was linked to Coinbase offering the token without adequate disclosures. Rayfield said:
“You don’t go in for a medical procedure without knowing the risks. It’s the same for everyday folks who want to invest in cryptocurrency. I am committed to protecting Oregon’s investors so they’re not taken advantage of.”
This investor-focused message reflects the state’s reasoning: it believes consumer protection is being ignored in the pursuit of tech growth. But for those within the industry, the lawsuit feels like a return to tactics they believed were falling out of favor.
What Comes Next in Coinbase’s Fight
While Coinbase prepares to contest the Oregon lawsuit, attention now turns to how other states respond. Will more follow Oregon’s lead, or will the broader trend of pulling back continue? There’s no clear answer yet, but Rayfield’s move has undoubtedly reignited the battle over who gets to police crypto in America.
Coinbase has already scored a few courtroom wins and regulatory reversals. That momentum may still help the company withstand Oregon’s legal challenge. But it also underscores a bigger issue: until Congress steps in with clear, unified laws, the crypto sector will remain vulnerable to piecemeal enforcement and political shifts.
Read also: Key Takeaways From The First White House Crypto Summit
