The ongoing legal dispute between Oregon’s Attorney General and the cryptocurrency exchange Coinbase has garnered significant attention, especially with the state’s recent push to keep the case in local courts.
Oregon’s AG Takes a Stand on Coinbase Lawsuit
On July 2, 2025, Oregon’s Attorney General, Dan Rayfield, submitted a motion arguing for the lawsuit against Coinbase to remain in the Circuit Court of Multnomah County. This decision follows Coinbase’s attempts to transfer the case to federal jurisdiction.
In early June, Coinbase took action by filing a notice of removal, claiming that federal laws are relevant to the lawsuit due to the use of federal definitions. The exchange pointed out that the Oregon Securities Law references the federal Securities Act of 1993 and the Howey Test, which is central to determining what qualifies as an “investment contract.”
Nonetheless, the prosecution’s motion emphasizes that nearly five decades ago, the Oregon Supreme Court diverged from the Howey precedent. This ruling in Pratt v. Kross established a broader understanding of what constituted an investment contract in the state, broadening the scope beyond federal interpretations.
The AG’s filing argues against Coinbase’s characterization of the lawsuit as a “regulatory land grab,” instead framing it as a necessary legal action intended to protect consumer interests under state law. As a result, the Attorney General posits that the case is best handled by Oregon’s legal system.
The Background of Oregon’s Legal Action
On April 18, 2025, Oregon’s AG initiated legal proceedings against Coinbase in the Multnomah County Circuit Court. The lawsuit accuses the crypto platform of violating Oregon securities laws by allowing the sale of unregistered cryptocurrencies to its residents.
Reports from reputable sources indicate that the state alleges Coinbase has violated laws that penalize individuals who either sell or assist in the sale of securities without proper registration (ORS 59.115(1)(a)).
In response to the lawsuit, Coinbase’s Chief Legal Officer (CLO), Paul Grewal, criticized the state’s actions, asserting that they are merely a continuation of the prior SEC policies under Gary Gensler. He suggests that this lawsuit is an attempt to replicate the SEC’s generally criticized regulatory stance.
Earlier, the SEC sued Coinbase in June 2023, emphasizing that the platform acted as an unregistered broker-dealer while unlawfully offering unregistered securities. That case was dismissed in February 2025, as part of a larger shift to establish a dedicated Crypto Task Force.
The current Oregon lawsuit charges that Coinbase has marketed high-risk investments without adequate consumer protections, impacting Oregonians financially. Notably, this case addresses many more cryptocurrencies than those identified in the SEC’s actions, which mentioned only 13 tokens. Oregon’s claims encompass a total of 31 cryptocurrencies identified as investment contracts.
In a recent statement, Grewal expressed his concerns regarding the potential implications of Rayfield’s motivations to return the lawsuit to state courts, arguing it conflicts with the progress made towards a federal regulatory structure.
While other regions have progressed to 2025, Oregon’s AG attempts to follow outdated regulatory methods with this “Gensler-era” lawsuit. His pursuit of a fragmented state-by-state regulatory approach hinders national progress and ultimately harms consumers navigating the crypto landscape.
