Oregon’s Coinbase Lawsuit: A State-Level Challenge After SEC Retreat

Following the SEC’s withdrawal of its federal lawsuit, Oregon Attorney General Dan Rayfield is preparing to file a lawsuit against Coinbase. The state alleges the cryptocurrency exchange is selling unregistered securities to Oregon residents. This move highlights the continued regulatory uncertainty facing the crypto industry.

Coinbase’s chief legal officer, Paul Grewal, has described Oregon’s planned action as a direct copy of the SEC’s 2023 lawsuit, a case the SEC dropped in February. Grewal expressed his disappointment on X, stating that this action runs counter to the national focus needed for coherent cryptocurrency regulation.

\”In case you think I’m jumping to conclusions, the attorney general’s office made it clear to us that they are literally picking up where the Gary Gensler SEC left off — seriously. This is exactly the opposite of what Americans should be focused on right now.\” – Paul Grewal

This lawsuit underscores the ongoing challenges for the crypto industry, even after achieving federal legal wins. State-level actions risk creating a fragmented regulatory landscape and obstructing the development of consistent national policies.

Related: Coinbase distances Base from highly criticized memecoin that dumped $15M

State-Level Actions Following SEC’s Shift

The SEC’s change in approach towards cryptocurrencies, largely attributed to the January resignation of former chairman Gary Gensler, prompted a wave of dropped lawsuits and investigations. This impacted several crypto companies, including Coinbase, Uniswap, and Kraken.

Numerous states mirrored the SEC’s actions, dismissing their own lawsuits against Coinbase in early 2025. Vermont, for example, dropped its case on March 13th, citing the SEC’s regulatory shift and newly formed crypto task force.

South Carolina and Kentucky followed suit, dismissing their cases against Coinbase shortly after Vermont. Despite these victories, Coinbase continues to advocate for a unified federal approach to crypto regulation.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered