- Oregon Attorney General Dan Rayfield revives a lawsuit against Coinbase, continuing the SEC’s previous claims about unregistered securities.
- Coinbase refutes the lawsuit, calling it a “copycat” case and highlighting the SEC’s dismissal of similar charges.
- The lawsuit risks obstructing federal efforts to establish clear regulatory guidelines for crypto businesses.
Oregon’s Attorney General, Dan Rayfield, has announced that the state will proceed with a lawsuit against Coinbase, the popular cryptocurrency exchange. This legal action seeks to revive claims previously made by the U.S.
Securities and Exchange Commission (SEC), accusing Coinbase of operating an unregistered securities exchange and broker-dealer. In addition, the state intends to revisit allegations concerning the company’s staking program, which the SEC had argued involved the unregistered offer and sale of securities.
The announcement follows a recent shift in the regulatory landscape. Just two months earlier, the SEC had dropped its case against Coinbase, citing the formation of a new Crypto Task Force and efforts to create a more comprehensive federal framework for digital asset regulation. Despite this, Oregon’s actions seem poised to reignite a battle that many in the crypto industry thought had been resolved.
Coinbase ready to fight legal battle
Coinbase Chief Legal Officer Paul Grewal quickly responded to the news, calling the suit meritless. In a press release, Grewal reiterated that the lawsuit is nothing more than a repeat of the SEC’s discredited allegations, claiming that such matters had previously been settled in the company’s favor.
He also criticized the Oregon Attorney General for wasting taxpayer dollars on a case that has already been dismissed at the federal level.
“The Office of the Attorney General is essentially taking up where the SEC left off,” said Grewal. “It is simply political maneuvering, and it is embarrassing for Oregon.” Coinbase, meanwhile, expressed confidence in its legal standing, announcing its willingness to defend the lawsuit and continue doing business as usual in Oregon.
Oregon lawsuit threatens national crypto regulation
Oregon’s legal action is feared by critics of the lawsuit, who contend that it jeopardizes the broader effort for federal regulation of the cryptocurrency market. Over the past few months, there has been substantial bipartisan support within Congress for the passage of extensive legislation that would be able to give clear guidelines for virtual currencies and help the crypto market flourish. But the Oregon litigation risks distracting legislators and slowing crucial progress toward the development of a nationwide framework.
The statement of Coinbase emphasizes that the company is determined to defend itself from the lawsuit regardless of its effects on national crypto policies. “This lawsuit doesn’t do anything for consumers, nor does it help promote American leadership,” said Grewal. “It is a misguided effort to regulate a global market through the state, and it is a step backward from the progress made.”