- Oregon Attorney General Dan Rayfield files a state lawsuit against Coinbase, echoing previously dismissed SEC claims over unregistered securities.
- The complaint cites investor losses in assets like ICP, arguing Coinbase promoted risky digital assets without proper safeguards.
- Coinbase rejects the claims as resolved, warning that the lawsuit undermines federal efforts toward unified crypto legislation.
Oregon has filed an action against Coinbase for violating the Oregon Securities Law by providing unrecorded securities to the people of Oregon. The case also triggers previous federal charges from the U.S. Securities and Exchange Commission (SEC), which has left the public questioning the dual regulation of crypto by states and the federal government.
The complaint submitted to the Multnomah County Circuit Court asserts that Coinbase has been selling digital asset investments considered unregistered securities. It claimed Coinbase provided trading services, safeguarded customers’ assets, and popularized investments without adequate screening. Rayfield stated that these activities put the people of Oregon at risk of losing their hard-earned money in a volatile market.
Coinbase Rejects Allegations as Previously Resolved
Coinbase retaliated by describing the case in Oregon as the same as the SEC’s previous enforcement action that the federal agency dismissed with prejudice in February 2025. In response to the state-level action, Coinbase’s Chief Legal Officer Paul Grewal referred to the claims as unnecessary and have already been dismissed at the federal level.
Coinbase notes that such lawsuits are unhelpful, especially as new developments emerge in Congress for an industry-wide bill regulating digital assets. However, the company stressed that all operations are legal and stated most of the digital assets listed on the platform do not fall under securities under current legal standards.
Specific Assets Cited as Risk Examples in Complaint
However, the Oregon complaint includes some claims of investors’ abusive practices. For instance, the Securities and Exchange Commission (SEC) recognized Internet Computer Protocol (ICP) as an unregistered security. It alleges that ICP, having listed on Coinbase, reduced its price from $700 to $72 in a single month and is now trading around $7, which is a huge loss-making investment.
The case states that Coinbase’s advertisement of such assets as ICP makes investors make investment decisions based on incomplete or misleading information. The complaint also claims other risks associated with unregistered assets, such as market manipulations and fraud.
Regulatory Divergence Between State and Federal Approaches
This legal action shows a turf war emerging between the state and federal agencies on cryptocurrency regulation. Although the SEC has recently ceased several reports and introduced a Crypto Task Force for policy formation, Oregon’s leaders think that states must act because federal regulation remains weak.
Rayfield said that if more energetic action is not taken on the state level, investors may still be vulnerable to poor digital asset products. He cast the lawsuit as part of the effort to continue protecting consumers in Oregon, as he said, regulation is being retreated at the federal level.
Implications for Broader Crypto Policy in the U.S.
This action increases the uncertainty around the current legal framework that governs digital assets in the United States of America. While Congress is still debating federal laws to define and regulate cryptocurrencies, such cases at the state level may make it difficult.
Coinbase stated that such actions endanger bipartisan processes of creating a code that stakeholders stand to defend, which is key to realizing national unified adoption. The management assured that the firm would remain in Oregon and that they would protect the lawsuit legally.
