Key Takeaways:
Oregon’s decision to revive the SEC’s dropped lawsuit against Coinbase exposes the fragmented and unpredictable nature of U.S. crypto regulation, as state authorities continue to pursue enforcement actions even after federal agencies have ceased their efforts. To justify this, Oregon argues that local consumer protection is more important, while Coinbase and others warn that such lawsuits risk undermining bipartisan efforts for clear, nationwide digital asset legislation. With the ongoing advancement of federal crypto bills and the SEC’s backing away from aggressive enforcement, Oregon’s case suggests that regulatory uncertainty persists in the U.S.The Attorney General of Oregon, Dan Rayfield, is preparing to file a lawsuit against Coinbase, similar to the charges brought by the U.S. Securities and Exchange Commission (SEC) that were dismissed earlier this year.
The new enforcement action, expected to be filed on Friday, alleges that Coinbase operated as an unregistered securities platform and offered staking services without proper registration—claims that resemble those in the SEC’s now-dismissed federal case.
Oregon Is ‘Picking Up Where Gary Gensler Left Off’ in New Legal Attack
Coinbase Chief Legal Officer Paul Grewal announced the pending lawsuit on X, describing the case as a “copycat” of the SEC’s original enforcement action.
He added, “As a reminder, the SEC dismissed that case with prejudice. This type of political jockeying is an embarrassing waste of Oregon taxpayer dollars.”
The SEC’s case, filed in June 2023, accused Coinbase of acting as an unregistered broker, exchange, and clearing agency, and of facilitating the trading of at least 13 crypto assets considered unregistered securities. It also challenged the legality of the company’s staking-as-a-service program.
The federal agency dropped the case in February 2025 following a broader shift in regulatory tone under a new SEC administration, which has since moved away from the aggressive enforcement approach championed by former Chair Gary Gensler.
Now, Oregon’s Attorney General appears to take up the same arguments.
According to a report from Fox Business journalist Eleanor Terrett, Rayfield has informed Coinbase that the state will pursue charges involving unregistered securities offerings and staking services.
Coinbase says the Oregon AG’s office explicitly told the company they were “picking up where the Gary Gensler SEC left off.”
Coinbase Responds to State-Level Enforcement
Coinbase criticized the lawsuit as an outdated attempt to impose a regulatory regime that is no longer backed at the federal level.
“This is exactly the opposite of what Americans should be focused on right now,” Grewal said.
Coinbase argues that continued state-level enforcement actions risk undermining those efforts and creating further regulatory uncertainty in the U.S. crypto industry.
“We’ve never been closer to bipartisan legislation for digital assets and this backward lawsuit does nothing to protect consumers or solidify American leadership,”continued Grewal.
Despite the legal challenge, Coinbase confirmed that its operations in Oregon will continue without interruption.
The company stated that it is prepared to defend against the lawsuit and remains confident in its legal position.
SEC’s Shift on Crypto Enforcement Unravels as States Follow Suit
The SEC’s February dismissal of its high-profile case against Coinbase marked a turning point in U.S. crypto enforcement policy.
The agency, now under the leadership of Acting Chair Mark Uyeda, has shifted away from the aggressive stance adopted during Gary Gensler’s tenure.
Gensler had pushed to classify most cryptocurrencies as securities and targeted staking services as unregistered offerings.
Coinbase’s legal victory triggered a domino effect, with Vermont, South Carolina, Kentucky, and Illinois quickly abandoning their cases.
The SEC also quietly dropped actions against Consensys, Kraken, Robinhood, and Ripple, highlighting a clear pivot under the new leadership.
Despite this shift, Oregon’s revival of the SEC’s original case against Coinbase now stands out, rekindling tensions in an otherwise cooling regulatory climate.
Frequently Asked Questions (FAQs)
By highlighting conflicting rules, state lawsuits can prompt lawmakers to craft cohesive crypto laws. SEC Chair Uyeda urged temporary guidelines to prevent fragmented state oversight.
Oregon’s securities law covers crypto. In 2024, the state’s Division of Financial Regulation settled with a platform over unregistered yield crypto products, highlighting its enforcement power.
Courts apply the Howey Test, assessing if there’s a money investment in a shared venture with profits expected from others’ efforts. When all four prongs are met, the asset is deemed a security.
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