Coinbase Challenges Oregon Crypto Lawsuit, Cites Federal Overreach

Coinbase (NASDAQ: COIN) has petitioned a federal court to take over a lawsuit filed by Oregon’s Attorney General Dan Rayfield, arguing the state is overstepping by accusing the crypto exchange of selling unregistered securities. In a Monday filing, Coinbase claims the lawsuit disrupts federal efforts to clarify digital asset regulations and risks creating a fragmented, conflicting regulatory environment across states.

Calling the lawsuit a “regulatory land grab,” Coinbase says Oregon is attempting to impose its own rules on crypto markets, despite recent bipartisan progress in Washington aimed at establishing nationwide crypto frameworks. The company notes that the SEC dropped a similar case against it earlier this year and argues Oregon is trying to revive claims that federal regulators have already dismissed.

Coinbase’s Vice President of Legal, Ryan VanGrack, stressed the broader implications, stating, “A lone Attorney General is trying to inhibit regulatory clarity and impede consumer choice.” He added that the case undermines crypto’s increasing bipartisan support, citing states like Vermont, Kentucky, and Illinois that have dismissed similar actions.

The filing also questions whether Oregon’s Attorney General even has the legal authority to bring the suit, noting that the Division of Financial Regulation typically handles such matters. Coinbase argues Rayfield is overreaching in an attempt to position himself as a national crypto regulator.

VanGrack dismissed claims of partisan motives, suggesting instead that the lawsuit is politically driven. “It’s about headlines, not helping Oregonians,” he said, affirming that Coinbase will not exit Oregon unless legally forced to do so.

“We are going to fight,” he stated. “What Oregon has done is wrong.”

Coinbase’s challenge signals a broader industry pushback against state-level crypto crackdowns, especially in the absence of cohesive federal legislation.