Oregon Attorney General Dan Rayfield has revived a case the SEC had dropped against Coinbase back. Dan, a Democrat, officially told the exchange that his office is filing charges, accusing the exchange of running an unlicensed securities exchange and broker-dealer.
In addition, he said Coinbase’s staking program is an illegal securities offering. These same allegations are what the federal government let go two months ago. SEC dropped its case with prejudice, meaning that the agency cannot bring it back, with the efforts in Washington in building new crypto rules and launching a task force part of the moves.
Oregon brings back case against Coinbase
Chief Legal Officer at Coinbase Paul Grewal posted a response on X noting that the entire thing is a recycled federal lawsuit. “Today the Oregon Attorney General is resurrecting the dead by bringing a copycat case of the SEC’s enforcement action against Coinbase,” Paul wrote. “As a reminder, the SEC dismissed that case with prejudice.”
He noted that it wasn’t a coincidence as Dan’s office confirmed that they were continuing where Gary Gensler, the former SEC boss, left off. “Seriously,” Paul wrote. “This is exactly the opposite of what Americans should be focused on right now.”
Paul said the lawsuit was a political stunt and it is not doing anything for people in Oregon. “This type of political jockeying is an embarrassing waste of Oregon taxpayer dollars,” he wrote. He also said it’s not just a legal rerun—it’s hurting national policy. “Bipartisan momentum has never been stronger to pass comprehensive federal legislation for crypto,” Paul said. “And this backward lawsuit does nothing to protect consumers or solidify American leadership.”
Paul mentioned that Dan has refused to accept that. He said Oregon is dragging up arguments that were already dismissed and have been proven wrong again and again. “These hand-me-down arguments are years out of date and defy public opinion, technological progress, and good governance,” Paul said. “Let there be no doubt: Oregon’s lawsuit, like the SEC’s, is meritless, and Coinbase will do whatever is required to beat it.”
He warned that lawsuits like this come with a price. Paul said this move from Dan “directly undermines constructive policymaking happening in DC.” He pointed out that both Democrats and Republicans in Congress are finally working on laws that would give clear rules for crypto. Oregon, instead of waiting for that, is trying to go rogue. “Yet instead of waiting for Democrats and Republicans in Congress to enact clear rules of the road,” Paul wrote, “Oregon has taken it upon itself to try to regulate a worldwide industry through enforcement.”