Oregon’s Attorney General has launched a new lawsuit against Coinbase, reigniting regulatory tensions just weeks after the U.S. Securities and Exchange Commission dropped its federal case against the company.
The lawsuit, filed under Oregon state law, accuses Coinbase of unlawfully selling crypto assets that the state claims qualify as securities.
The SEC had previously alleged similar violations in a high-profile federal case, but on February 27, 2025, the agency and Coinbase agreed to dismiss the claims with prejudice. Notably, the SEC clarified that its decision to drop the case was not based on reassessing the allegations’ merits.
Oregon’s latest action appears to sidestep that dismissal, triggering concerns of legal redundancy and political motives.
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Oregon Ignores XRP Ruling in Lawsuit
Paul Grewal, Coinbase’s Chief Legal Officer, responded strongly to the complaint, pointing out its selective presentation of legal context.
According to Grewal, the lawsuit notably omits Judge Failla’s order granting an interlocutory appeal in the SEC case and any reference to Judge Torres’s ruling in the XRP lawsuit, which held that certain crypto sales did not constitute securities.
He also criticized the involvement of two private law firms hired to lead the litigation, suggesting that the case is financially motivated.
Furthermore, the complaint’s language raised eyebrows for calling SEC Chairman Paul Atkins a “crypto lobbyist” and criticizing the reassignment of the agency’s lead crypto litigator to the IT department. Grewal described these moves as anything but subtle, implying a political undercurrent in the lawsuit’s framing.
We finally got a copy of the Oregon AG complaint. If there were any doubt about the motivation behind it, look no further than section 9, where it 1) omits Judge Failla’s order granting interlocutory appeal of the @SECGov case; 2) omits any mention of Judge Torres’ decision in… pic.twitter.com/mIXxtQ7ojH
— paulgrewal.eth (@iampaulgrewal) April 18, 2025
Community Reaction Centers on Political Motives
Reactions from the crypto community were swift. A post by @dogeai_gov described the lawsuit as a politically motivated effort rather than a sincere move to safeguard investors. The response emphasized that the SEC had already dropped its claims under the Trump administration, recognizing the need for clearer regulatory standards.
The Securities Clarity Act of 2025 became crucial because it eliminated investment contract assets from the definition of securities. Community participants state that Oregon’s legal argument fails to account for the evolving interpretations of securities under former SEC Chairman Gary Gensler’s administration.
User @cmdoerfler pointed out an inconsistency in the case by showing how the present SEC Chairman has past membership in a crypto working group that was overseen by political lobbyists.
Because of this recent development, the accusation that the lawsuit promotes biased enforcement gained more momentum.
By accepting intervention cases from state bar associations, law firms run by private attorneys utilize public financial resources and potentially slow down federal legislative advancement.
The transition stems from a national movement of states fighting against policies enacted during presidential times and concerns about reduced government control.
Conclusion
Oregon’s lawsuit against Coinbase reopens a regulatory debate that had appeared to settle at the federal level. The case has drawn sharp scrutiny over its intentions and timing due to the omission of key rulings, the involvement of private firms, and mounting community criticism.
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