Coinbase has formally moved to shift a securities lawsuit filed by the State of Oregon from state to federal court.
The company submitted a Notice of Removal to the U.S. District Court for the District of Oregon, arguing that the case raises substantial federal legal questions and thus belongs in federal jurisdiction.
The lawsuit, filed in Multnomah County Circuit Court in April 2025, accuses Coinbase of selling 31 crypto tokens without registering them as securities under Oregon law.
The state seeks civil penalties of $20,000 per violation, disgorgement, and an injunction preventing Coinbase from selling the tokens in Oregon.
In a Notice of Removal filed Monday with the U.S. District Court for the District of Oregon, Coinbase argued that the case raises “substantial” and “disputed” federal questions that warrant federal jurisdiction.
The company called Oregon’s lawsuit a “copycat” of a dismissed SEC case and accused Attorney General Dan Rayfield of attempting to impose a “patchwork” of state rules that threaten national crypto industry uniformity.
Federal Questions and Constitutional Arguments at the Core of Coinbase’s Defense
Coinbase’s legal filing stresses that Oregon’s claims hinge on whether the digital assets qualify as securities under the federal Howey test, a Supreme Court standard for investment contracts.
This creates a “federal question” justifying removal to federal court under the Grable doctrine, which permits federal jurisdiction when state law claims implicate significant federal issues.
The exchange also cited “federal officer removal” because the U.S. Marshals Service had engaged Coinbase to sell some seized crypto assets, including more than half of the tokens named in Oregon’s suit.
Coinbase argued that Oregon’s lawsuit directly interferes with these federal operations.
Additionally, Coinbase pointed to the SEC’s decision to drop a similar enforcement action “with prejudice” earlier this year following a federal court ruling criticizing the agency’s failure to establish clear rules.
The filing indicated ongoing congressional efforts to create a uniform federal regulatory framework, including a draft bill released last week that would place digital asset oversight under the Commodity Futures Trading Commission (CFTC) rather than the SEC.
“Oregon cannot now rewrite history,” Coinbase said in its filing. “Its own regulators previously declared that crypto assets were unregulated, similar to gold, and the Attorney General lacks the authority to reverse that judgment unilaterally.”
Broader Implications for Crypto Regulation and Industry Compliance
Coinbase warned that allowing Oregon’s lawsuit to proceed in state court risks creating a fragmented regulatory environment.
This would force crypto firms to navigate a confusing patchwork of state laws, which the company said would hinder innovation and limit consumer access to digital assets nationwide.
Oregon’s Attorney General has defended the suit as necessary to protect investors amid perceived gaps left by federal agencies stepping back from enforcement.
Coinbase pushed back, characterizing the move as an attempt to impose “one state’s vision” on the national crypto market, which is rapidly evolving and requires coordinated regulation.
The case awaits the federal court’s decision on whether to retain jurisdiction after removal.
Coinbase remains confident its federal defense will prevail, emphasizing its history of regulatory cooperation, including the SEC’s approval of its 2021 IPO.
The outcome could set an important precedent clarifying the balance between state and federal oversight of crypto firms, a key issue as the industry grows and lawmakers push for more explicit rules.
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