SEC’s retreat and XRP’s legal triumph are sidelined as Oregon charges ahead with a new lawsuit against Coinbase, intensifying the war over crypto regulation.
Coinbase Says Oregon Ignores SEC Losses, XRP Victory in Crypto Lawsuit
Legal tensions surrounding crypto exchange Coinbase have reignited following a new lawsuit filed by Oregon’s Attorney General, adding another chapter to the company’s long-running regulatory challenges. The case comes just weeks after the U.S. Securities and Exchange Commission (SEC) formally withdrew its own federal claims against the crypto exchange. The agency ended the suit without addressing the validity of its allegations. This shift happened amid leadership changes at the agency, including the reassignment of its lead crypto enforcement attorney and the appointment of former industry figure Paul Atkins as chairman.
Coinbase Chief Legal Officer Paul Grewal challenged both the substance and the tone of Oregon’s claims. In a post on social media platform X on April 18, Grewal accused the state’s legal team of omitting key federal legal developments and of politicizing the enforcement process. “We finally got a copy of the Oregon AG complaint,” he wrote, adding:
If there were any doubt about the motivation behind it, look no further than section 9, where it 1) omits Judge Failla’s order granting interlocutory appeal of the SEC case; 2) omits any mention of Judge Torres’ decision in XRP.
He continued: “3) bears the stamp of the two private law firms brought on to profit from this suit; 4) labels the chairman of the SEC as a ‘crypto lobbyist’ and 5) decries the reassignment of Gensler’s lead lawyer to the IT department. Not exactly subtle.” Grewal’s comments reflect Coinbase’s position that the legal action is driven more by opportunism and narrative than by sound legal principles.
In a pivotal development for cryptocurrency regulation, Judge Katherine Polk Failla granted Coinbase’s request for an interlocutory appeal in its case against the SEC, pausing district court proceedings to allow the Second Circuit to address whether digital asset transactions on Coinbase qualify as “investment contracts” under the Howey test. The SEC has also withdrawn its appeal against Ripple and Judge Analisa Torres’ 2023 ruling that XRP sales on public exchanges do not constitute securities, marking a substantial victory for Ripple and signaling a potential shift in the SEC’s approach to crypto oversight under new leadership.
The Oregon complaint alleges that Coinbase has violated the state’s securities law by facilitating the sale of crypto assets that the state considers unregistered securities. It also criticizes the company’s inclusion of arbitration clauses and class action waivers in its user agreements, which the attorney general argues curtails consumer protections. By invoking Oregon Revised Statute 59.331, the state seeks to impose enforcement measures and halt practices it claims defy legislative safeguards.
While the case will proceed through the state courts, Coinbase’s legal team continues to frame the matter as part of a broader, politically charged campaign against digital asset innovation. The lawsuit alleges:
Coinbase has for years defied the regulatory structure and requirements established by the Oregon Legislative Assembly to protect Oregon investors.
