Coinbase is seeking to have Oregon’s securities case against it heard in federal court, claiming it is a “copycat” of a previous SEC lawsuit. Here’s a breakdown of the situation:
The Lawsuit: On April 2025, Oregon Attorney General Dan Rayfield filed a lawsuit against Coinbase, accusing the company of selling unregistered securities to the state’s residents. Rayfield stated that the exchange “sold high – risk investments without them being properly vetted to protect consumers” and that the alleged unregistered securities are “vulnerable to pump – and – dump schemes and fraud”.
Coinbase’s Argument: In a June 2 motion filed in a Portland federal court, Coinbase claimed that Rayfield’s lawsuit exceeded his authority and is an “attempt to invade the province of federal law”. The crypto exchange said Rayfield’s suit is a “copycat case” of the SEC’s 2023 lawsuit against the firm, which alleged it sold unregistered securities. The SEC agreed to drop the case in February 2025, as part of many crypto – related cases it abandoned under the Trump administration. Coinbase also said it tried to meet with Rayfield after he notified the firm of his plan to sue within 48 hours, but Rayfield refused.
Legal Issues at Stake: Coinbase’s chief legal officer, Paul Grewal, said that Oregon’s claims raise fundamentally federal issues like the meaning of “investment contract”, which should be resolved by a federal court. Coinbase argues that the state is overstepping its bounds and trying to create a patchwork regulatory system that conflicts with the bipartisan – supported federal regulatory framework. It believes the case should be in federal court to ensure a consistent interpretation of federal securities laws and avoid legal fragmentation.
Related topic:
