Coinbase Caught in New Legal Turmoil as Oregon Launches Crypto War Despite SEC Backing Down
Despite the SEC’s recent withdrawal from a series of lawsuits against cryptocurrency exchanges, the state of Oregon has entered the legal fray by filing a lawsuit against Coinbase — one of the largest exchanges in the country. The move raises questions about whether state agencies are outmaneuvering the federal government in the fight to regulate digital assets.
SEC Backs Down, Oregon Moves Forward
Just weeks after the SEC decided to withdraw its appeal in the Ripple case and grant Coinbase a temporary restraining order, the Oregon Attorney General has filed a separate lawsuit, alleging that Coinbase violated state securities laws by offering and selling crypto assets that Oregon considers unregistered securities.
In addition to the nature of the tokens traded, the lawsuit also criticizes Coinbase's implementation of arbitration clauses and class-action waivers in its user agreements — actions that are seen as undermining the rights of retail investors.
Coinbase fires back: "This is politically motivated"
In response to the lawsuit, Coinbase's chief legal officer Paul Grewal took to social media to denounce Oregon's actions as "politicizing the law" and "deliberately ignoring important legal developments at the federal level."
He emphasized that Oregon's lawsuit ignores three key points:
1) Judge Failla's order granting Coinbase a temporary stay;
2) Judge Torres' ruling in the Ripple case, which found XRP was not a security on the secondary market;
3) The SEC’s recent restructuring of its crypto enforcement division with a new chairman, Paul Atkins, who has pledged to pursue a more rational and principled approach to digital assets.
Grewal also points out that the state’s two private law firms could directly benefit from the lawsuit, suggesting that this is more than just a legal action — it’s a campaign against Coinbase and the entire crypto industry.
The fight is not over yet
Oregon’s move to sue in the face of the SEC’s backing down represents a new trend: states can take their own stance on digital assets, regardless of the federal stance. This has the potential to create a confusing and inconsistent legal landscape across the United States, making it even more challenging for blockchain companies and investors.
Meanwhile, Coinbase continues to assert its role as a leader in the fight for legal recognition of digital assets. The company believes that regulatory actions like the Oregon lawsuit not only delay innovation, but also create an environment of uncertainty that puts the US Web3 industry at risk of being left behind.
Conclusion
This event marks a new turning point in the battle between innovation and regulation. When a state like Oregon dares to confront a big name like Coinbase despite a softer stance from the SEC, the US crypto industry may witness a more complex and volatile regulatory period than ever before.