Coinbase has filed a motion to move a securities lawsuit brought by Oregon Attorney General Dan Rayfield to federal court, calling the case a duplicate of the SEC’s 2023 action and an unconstitutional overreach by a state authority into federal territory.
Coinbase: “This Is a Federal Matter”
In a June 2 motion filed in Portland federal court, Coinbase argued that Oregon’s lawsuit — which accuses the crypto exchange of selling unregistered securities — raises “fundamentally federal issues,” such as the definition of an “investment contract,” and therefore belongs under federal jurisdiction. The company emphasized that such matters are governed by federal securities law, not by individual states.
Coinbase characterized the Oregon case as a “copycat” lawsuit of the U.S. Securities and Exchange Commission’s (SEC) now-abandoned action, which was dropped in February 2025 amid a wave of crypto enforcement rollbacks under the Trump administration. The exchange further criticized the Oregon AG for acting with undue haste, noting that Rayfield gave the firm only 48 hours’ notice before filing the lawsuit and refused to meet with Coinbase beforehand.
“Dissatisfied with the federal government’s recent enforcement decisions, Oregon’s new Attorney General has set out to dictate the future of digital assets… on his chosen terms, timing, and turf,” Coinbase wrote in the filing.
Oregon Defends State-Level Enforcement
Attorney General Rayfield has defended the lawsuit as necessary to protect consumers, alleging Coinbase sold “high-risk investments” vulnerable to “pump-and-dump schemes and fraud.” He framed the action as part of a broader state-led effort to fill the regulatory void, claiming that federal regulators are retreating under the new political climate.
“States must fill the enforcement vacuum being left by federal regulators,” Rayfield said, referencing recent leadership and policy shifts at the SEC.
Broader Legal Context
Coinbase’s Chief Legal Officer Paul Grewal echoed the company’s stance on social media, arguing that legal definitions central to the case — such as what constitutes a security — must be resolved federally. He also noted that other states — including Vermont, South Carolina, and Kentucky — have dropped similar lawsuits against the firm.
What’s Next?
If the court grants Coinbase’s motion, the Oregon case could become part of a broader federal precedent on the regulation of digital assets, especially as state-level crypto enforcement intensifies in response to federal pullbacks.
