Coinbase, a leading U.S. cryptocurrency exchange, has urged a federal judge in Portland to take over a lawsuit filed by Oregon Attorney General Dan Rayfield, arguing it mirrors a prior Securities and Exchange Commission (SEC) case and belongs in federal jurisdiction.
The firm filed the motion on 2nd June, 2025. The firm has stated that the lawsuit filed by Oregon Attorney General Dan Rayfield in April 2025 goes too far.
The lawsuit claims that Coinbase sold unregistered securities and investments. Regulators in Oregon did not approve these securities and investments, prompting the filing of the lawsuit. Coinbase argues that Rayfield, as a state official, is stepping beyond his power and meddling in rules that the federal government should handle instead.
He says Coinbase promoted risky investments that were not properly reviewed or approved, which could harm people in Oregon. These investments might lead to scams, including “pump-and-dump” schemes, where someone artificially raises the price of a cryptocurrency and then sells it, causing the price to crash and leaving others with losses.
Rayfield stepped in because the Securities and Exchange Commission (SEC), a federal agency, had dropped its own 2023 lawsuit against Coinbase in February 2025. He believes this happened due to new priorities under President Trump’s administration.
Rayfield says states like Oregon need to take action to protect people because the federal government is no longer tackling these important cases, leaving a gap in oversight.
Coinbase countered that Rayfield’s complaint is a “copycat case” of the SEC’s earlier action, which also alleged unregistered securities sales. The exchange argues the issue hinges on federal questions, like the definition of an “investment contract,” and should be resolved in federal court.
Chief Legal Officer Paul Grewal emphasized those points in an X post, calling Oregon’s claims a matter for federal adjudication. Coinbase also noted it sought a meeting with Rayfield after a 48-hour lawsuit notice, but he declined.
The SEC’s retreat followed the reassignment of its top crypto litigator to an IT role, signaling reduced federal enforcement. Meanwhile, Kentucky, Vermont, and South Carolina recently dropped similar suits against Coinbase.
The exchange insists Oregon’s action undermines national crypto policy. No trial date is set, but the outcome could shape state versus federal roles in regulating digital assets.
