Coinbase is firing back at the state of Oregon following a new lawsuit that accuses the crypto exchange of violating state securities laws. Coinbase Chief Legal Officer Paul Grewal strongly criticized the legal action in a social media post on X (formerly Twitter) on April 18, 2025, claiming it was both legally flawed and politically motivated.
Grewal wrote, “We finally got a copy of the Oregon AG complaint. If there were any doubt about the motivation behind it, look no further than section 9.”
Grewal notably criticized the state’s filing for what he called selective omissions in the state’s filing. Among the information that is lacking, Coinbase’s argument mostly draws from recent rulings from federal courts that may have a huge impact on U.S. cryptocurrency regulations.
He mentioned the absence of the U.S. District Judge Katherine Polk Failla’s decision to grant Coinbase an interlocutory appeal in its federal case against the SEC, an important development that could redefine how courts interpret crypto transactions under the Howey test.
He also drew attention to no reference to U.S. District Judge Analisa Torres’ 2023 ruling that XRP sales on public exchanges do not qualify as securities, the involvement of two private law firms in drafting the complaint, which Grewal claims are positioned to profit from the case, and a reference to SEC Chair Gary Gensler as a “Crypto lobbyist .”
Not exactly subtle, Grewa continued, implying that the case is more about creating a narrative that is antagonistic to cryptocurrency than it is about protecting investors.
On April 18, the case was filed in Multnomah County Circuit Court, marking a major step for Oregon to control digital assets at the state level. According to Attorney General Dan Rayfield, Coinbase has been operating as an unregistered securities dealer by listing and promoting high-risk cryptocurrency on its platform.
The state claims that Coinbase not only enabled the sale of these unregistered assets but also actively encouraged Oregonians to invest in their company, leading to substantial financial losses among everyday investors.
“After building trust with Oregon consumers, Coinbase sold high risk investments without them being properly vetted to protect consumers,” Rayfield said. “Oregonians lost money, and we believe Coinbase should be held accountable and take steps to protect consumers.” Saied Rayfield.
According to Coinbase, the Oregon case is indicative of a larger pattern of politicized state-level crypto regulation that undermines innovation by incorrectly applying antiquated securities rules to digital assets. The verdict in the case might establish a standard for the extent to which states might regulate cryptocurrencies, which would have significant ramifications for the sector.
Also read : SEC to Drop Lawsuit Against Coinbase, Says Brian Armstrong
