- Coinbase seeks federal court jurisdiction to block Oregon’s lawsuit.
- The company accuses the Oregon AG of political grandstanding.
- Coinbase affirms its commitment to defend its presence in Oregon.
Coinbase is challenging a lawsuit filed by Oregon’s Attorney General, arguing that the state is overstepping its authority by attempting to regulate digital assets territory the company believes should be governed by federal agencies. In a new legal move, Coinbase has filed to move the case to federal court, accusing Oregon of disrupting national regulatory progress on cryptocurrencies.
The lawsuit, originally filed in April, accuses Coinbase of trading unregistered securities in violation of Oregon’s state laws. Coinbase, in its federal filing late Monday, described the suit as a “regulatory land grab,” arguing it threatens to create a disjointed patchwork of state-level regulations in contrast to recent bipartisan federal efforts aimed at bringing clarity to the crypto industry.
Coinbase Rejects State Overreach
“This lawsuit is a regulatory land grab,” the filing reads. “Dissatisfied with the federal government’s recent enforcement decisions, Oregon’s new Attorney General has set out to dictate the future of crypto.”
Coinbase Vice President of Legal, Ryan VanGrack, added in an interview that Oregon is reviving a case the federal Securities and Exchange Commission (SEC) had already dropped.
Ryan VanGrack stated:
“What you have here is Oregon, and only Oregon, trying to revive the SEC case, which was dismissed with prejudice”.
The company also questions whether Oregon Attorney General Dan Rayfield has the legal authority to file the case at all. According to Coinbase, securities regulation in the state typically falls under the Division of Financial Regulation, not the Attorney General’s office.
Filing states:
“The Attorney General seeks to stretch his limited enforcement authority beyond the breaking point to install himself as the commissar of crypto for Oregon and beyond”.
Bipartisan Support Undermines Lawsuit Basis
VanGrack stressed that the crypto regulatory debate has evolved into a bipartisan issue at the federal level. He noted that states with both Republican and Democratic leadership, including Vermont, Kentucky, and Illinois, have backed off from similar legal actions.
VanGrack stated:
“It’s less about red or blue; it’s that there are a few holdovers”. “Crypto regulation and clarity have become bipartisan goals federally.”
He emphasized that Oregon’s lawsuit appears to be motivated more by political opportunity than consumer protection.
Coinbase has no plans to exit the Oregon market unless legally compelled. VanGrack affirmed the company’s commitment to resisting what it sees as unjust legal action.
VanGrack stated:
“We are not pulling out of the state unless we are required to”. “We are going to fight, because what Oregon has done is wrong.”
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