Oregon Attorney General Dan Rayfield has reignited legal tensions with Coinbase, filing a new lawsuit that accuses the crypto exchange of violating state securities laws. The action comes just months after the U.S. Securities and Exchange Commission (SEC) dropped its federal case against the company.
Mirroring many of the SEC’s earlier claims, the state-level complaint alleges that Coinbase operated as an unregistered broker and facilitated the sale of digital assets considered securities under Oregon law. The lawsuit also targets Coinbase’s staking-as-a-service program, which had previously drawn federal scrutiny.
Rayfield contends that Coinbase knowingly promoted and distributed high-risk, unregistered crypto products to Oregon residents.
“After building trust with Oregon consumers, Coinbase sold high risk investments without them being properly vetted to protect consumers,”
“Oregonians lost money, and we believe Coinbase should be held accountable and take steps to protect consumers.“
Coinbase has strongly rejected the allegations. Chief Legal Officer Paul Grewal called the lawsuit a political stunt and a regression in crypto regulation.
“We remain confident that we are right on the facts and the law, and we are prepared to fight this misguided lawsuit,” he said in a Friday statement.
“In the meantime, we’re business as usual in Oregon.”
States Step In as Federal Enforcement Pulls Back
Since President Donald Trump returned to office, the SEC has taken a notably softer stance on crypto regulation—marking a significant shift from the more aggressive enforcement seen under former Chair Gary Gensler.
Under Gensler, the SEC broadly interpreted digital assets as securities and pushed for mandatory registration from platforms like Coinbase. That era produced multiple high-profile enforcement actions. However, the current administration has since reversed course, with the SEC recently dropping investigations into Kraken, Consensys, Uniswap, and OpenSea.
Rayfield framed his lawsuit as a direct response to this federal retreat.
“With federal regulators walking away from these important cases, it falls to the states to fill the enforcement vacuum,” he said.
This evolving dynamic underscores a growing divide between state and federal enforcement—a fragmentation that could significantly shape the future of U.S. crypto oversight.
Congress Advances Crypto Bills Amid State Pressure
As states pursue independent legal actions, lawmakers in Washington are accelerating efforts to pass comprehensive crypto legislation. Bipartisan proposals to establish clear guidelines for stablecoins and digital asset markets are gaining momentum, with multiple bills advancing through House and Senate committees.
President Trump has reportedly urged Congress to deliver finalized crypto regulation by August, signaling that federal clarity may soon be within reach.
Coinbase’s Paul Grewal criticized Oregon’s lawsuit as undermining that progress.
“This is exactly the opposite of what Americans should be focused on right now,” he said.
“We’ve never been closer to bipartisan legislation for digital assets and this backward lawsuit does nothing to protect consumers or solidify American leadership.”
Quick Facts
- Oregon AG Dan Rayfield has filed a securities lawsuit against Coinbase
- The case echoes the SEC’s now-dismissed federal complaint
- Coinbase says the lawsuit is redundant and politically motivated
- The dispute reflects a growing divide between federal and state crypto regulation
