Oregon Revives Coinbase Lawsuit After SEC Drops Case

Key Points

• Oregon Revives Coinbase Lawsuit After SEC Drops Case
• Lawsuit claims Coinbase sold unregistered securities
• SEC and several states have dropped similar legal actions
• Coinbase pushes for clear, unified federal crypto laws

Even after a major legal win at the federal level, Coinbase isn’t in the clear just yet. The Coinbase lawsuit now moves to the state level, as Oregon Attorney General Dan Rayfield prepares legal action against the exchange. The claim? Coinbase allegedly sold unregistered securities to residents in Oregon.

In case you think I’m jumping to conclusions, the AG’s office made it clear to us that they are literally picking up where the Gary Gensler SEC left off. Seriously. 2/4

— paulgrewal.eth (@iampaulgrewal) April 18, 2025

Paul Grewal, Coinbase’s Chief Legal Officer, described the case as a “copycat” of the SEC’s 2023 lawsuit, which was dropped earlier this year. “They are literally picking up where the Gary Gensler SEC left off,” said Grewal.

This development highlights a bigger issue. Even with the SEC stepping back, state-level authorities are pressing forward with their own agendas. This could lead to a fragmented legal landscape that makes it harder for crypto companies to operate across the U.S.

Coinbase believes this approach is inefficient. Grewal criticized Oregon’s move, calling it “the opposite of what Americans should be focused on right now.”

Today the Oregon Attorney General is resurrecting the dead by bringing a copycat case of @SECGov‘s enforcement action against Coinbase. As a reminder, the SEC dismissed that case with prejudice. This type of political jockeying is an embarrassing waste of Oregon taxpayer…

— paulgrewal.eth (@iampaulgrewal) April 18, 2025

The crypto industry has been urging for clarity—particularly after a turbulent period marked by regulatory chaos and market volatility. And while some states are stepping away from legal battles, Oregon is jumping right in.

This isn’t Coinbase’s first time in the legal spotlight either. The company recently faced public backlash over a memecoin controversy, distancing itself from a project that saw $15 million vanish in a matter of hours. You can read more about that here.

SEC Exit Sparks State-Level Domino Effect

The SEC’s changing stance on crypto started with the January resignation of Chairman Gary Gensler. This led to a string of regulatory retreats—including the dismissal of the federal case against Coinbase in February. That case had accused the exchange of operating as an unregistered securities broker.

Vermont drops legal action against Coinbase. Source: State of Vermont – Techtoken

Following the SEC’s lead, several U.S. states also began dropping similar lawsuits against Coinbase:

• Vermont dropped its case on March 13, citing the SEC’s new direction and the creation of a dedicated crypto task force.

• South Carolina followed two weeks later.

• Kentucky ended its litigation on March 26.

These moves gave the industry hope for a more unified and less hostile regulatory environment. Yet, with Oregon stepping in, it’s clear the road to consistent U.S. crypto policy is still long and bumpy.

Coinbase continues to stress the need for a national crypto framework, warning that the current patchwork of state laws can hinder innovation and create confusion.

This fragmented approach can also affect investor confidence—especially in times when the broader crypto market is already under pressure. Coinbase, in fact, recently reported its worst quarter since the FTX collapse, as the market saw a 30% drop. You can find the full report here.

Fragmented Rules Risk Slowing Crypto Innovation

Coinbase’s Grewal emphasized the risks of a fractured regulatory approach. With each state taking a different stance, crypto companies face a growing compliance burden that can stunt innovation and expansion.

What’s more concerning is that state actions like Oregon’s could set a precedent for other states to pursue similar lawsuits—even after the SEC has dropped theirs. This raises questions about legal consistency and fairness.

The call for federal clarity isn’t new. Industry leaders have long demanded clear rules for what counts as a security in the crypto world. Without that, companies are left interpreting vague guidelines while trying to operate in a rapidly evolving market.

Meanwhile, the broader crypto ecosystem continues to wrestle with these regulatory challenges. For instance, Coinbase is also pushing back against Tornado Cash sanctions, warning that restrictions could soon return. You can read more about their stance here.

And while some firms are fighting legal battles, others are facing frustration from their own users. A recent example is the backlash surrounding Pi Network’s 3-phase migration plan, which left many early adopters feeling sidelined. Full story here.

On the market side, volatility remains high. Take RFC token, for example—its price dropped 40% recently, but bulls are still optimistic. Dive into that market move here.

Coinbase’s situation serves as a case study for the broader industry: even as the federal legal tide turns in crypto’s favor, state regulators still hold significant power. Until national policy catches up, the industry will remain in a state of legal limbo—fighting lawsuits on one hand while trying to build the future of finance on the other.