Oregon attorney general to sue Coinbase months after SEC drops case, exchange says

Oregon Attorney General Dan Rayfield is set to file a securities enforcement action against Coinbase, following the SEC's earlier dropped case against the exchange. Coinbase's Chief Legal Officer criticized the move as obstructive and politically motivated, arguing it undermines progress in crypto regulation. The SEC has shifted its approach under the Trump administration, dropping investigations into several crypto firms. Meanwhile, bipartisan efforts in Congress are underway to establish clearer regulations for the crypto industry.

Oregon Attorney General Dan Rayfield plans to file a securities enforcement action against cryptocurrency exchange Coinbase, echoing federal charges that were brought under the Biden administration but dropped earlier this year, according to the company’s chief legal officer.

The lawsuit is expected Friday, Coinbase Chief Legal Officer Paul Grewal said in a blog post.

The U.S. Securities and Exchange Commission dropped its case against Coinbase in February. The agency had charged the exchange in 2023 with operating as an unregistered broker, exchange and clearing agency, and claimed its staking-as-a-service program was also improperly registered.

"Oregon’s holdout campaign is obstruction for the sake of obstruction," Grewal said in a blog post on Friday. "It is a desperate scheme that does nothing to move the crypto conversation forward, and in fact takes us a giant leap backwards from hard-won progress."

The Oregon Attorney General's office did not immediately respond to a request for comment.

Since President Donald Trump took office, the SEC has taken a dramatically different approach to crypto compared to the Biden-era commission led by Gary Gensler. Gensler had argued that most cryptocurrencies are securities and pushed platforms like Coinbase to register with the agency.

In recent months, the SEC has dropped investigations into several crypto firms, including OpenSea, Kraken, Consensys and Uniswap.

Meanwhile, lawmakers in Washington are moving quickly to pass legislation to regulate stablecoins and the broader crypto industry. House and Senate committees have advanced bills with bipartisan support, and Trump has said he wants legislation on his desk by August.

"Bipartisan momentum has never been stronger to pass comprehensive federal legislation for digital assets—legislation that would enable domestic crypto businesses to thrive while preventing rogue state governments from bringing politically motivated actions against crypto firms," Grewal said on Friday. "Yet instead of waiting for Democrats and Republicans in Congress to enact clear rules of the road, Oregon has taken it upon itself to try to regulate a worldwide industry through enforcement."

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