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Oregon filed a lawsuit against Coinbase Friday accusing it of breaking state securities laws. The state's attorney general has alleged that Coinbase has promoted the sale of cryptocurrencies as unregistered securities. Coinbase's chief legal officer called the suit "desperate" and a revival of "regulation by enforcement."
Oregon has filed a suit against Coinbase, accusing it of violating securities laws by promoting and driving the sale of cryptocurrency as unregistered security.
In a statement, the state's attorney general accused Coinbase of earning "millions of dollars in fees as Oregonians have faced huge losses…in a market that's stacked against them."
"I am committed to protecting Oregon's investors so they're not taken advantage of," Oregon Attorney General Dan Rayfield said.
This lawsuit comes as the U.S. government is reducing enforcement actions against Coinbase, and other large exchanges. The U.S. Securities and Exchange Commission (SEC) acted against Coinbase and other major exchanges in February. Dropped its A lawsuit can be filed against the exchange if it violates securities law. States can also take legal action.
In a post on its website, Coinbase Chief Legal Officer Paul Grewal slammed the Oregon suit as "desperate" and a revival of "regulation by enforcement."
"The U.S. showed it was ready to turn the page on that dark, misguided chapter of unlawfully targeting the industry," Grewal wrote. "But Oregon's Attorney General refuses to face that reality and is trying to fight the same war all over again."
He added: "Let there be no doubt: Oregon's lawsuit, like the SEC's, is meritless, and Coinbase will do whatever is required to beat it."
During the Biden Administration, then SEC Chair Gary Gensler cracked down on the crypto space—filing lawsuits against Coinbase, Kraken, and Binance. Criticism accused the agency as being overly aggressive and slowing down progress.
The digital assets industry has seen a dramatic improvement in the business environment since the election of Donald Trump. Trump had promised during his presidential campaign to help the sector.
SEC has now launched a Crypto Task Force, the regulator claims that this group will provide rules to the often complicated and fast-moving crypto space.
James Rubin is the editor
