Oregon lawsuit underscores fragmented regulation despite SEC dismissal
Coinbase, the largest U.S.-based cryptocurrency exchange, has formally urged the Department of Justice (DOJ) to step in and establish uniform federal oversight for digital assets. The company argues that a patchwork of state-level enforcement actions is creating uncertainty, slowing innovation, and harming consumers.
Coinbase Challenges State-Level Securities Actions
In a letter to the DOJ, Chief Legal Officer Paul Grewal criticized what he described as “novel, expansive, and flawed interpretations of securities laws” by states targeting crypto firms. He stressed that federal preemption is needed to prevent conflicting rules.
Grewal pointed specifically to the state of Oregon’s lawsuit against Coinbase, filed in April, which accused the exchange of encouraging the sale of unregistered securities. The case went forward even after the SEC dropped its lawsuit against Coinbase in February.
“When Oregon can sue us for services that are legal under federal law, something’s broken,” Grewal wrote on X, highlighting how state actions contradict federal regulatory decisions.
Federal vs. State Jurisdiction Clash
Oregon Attorney General Dan Rayfield defended the state’s action, arguing that states must “fill the enforcement vacuum” left by federal regulators under the new administration.
This reflects a growing divide: while the Trump administration has pursued more business-friendly digital asset policies, some states are taking a stricter approach to enforcement.
Legislative Opportunity Ahead
Coinbase’s letter urged the DOJ to support congressional action on pending crypto legislation, including the CLARITY Act and the Responsible Financial Innovation Act of 2025. Both bills aim to bring greater legal certainty to the industry by clarifying asset classifications and introducing broad preemption provisions over state law.
Meanwhile, Coinbase has attempted to shift the Oregon case to a federal judge in the U.S. District Court for Oregon, and in July it filed a lawsuit against Governor Tina Kotek, challenging the state’s approach to crypto oversight.
By calling for federal preemption of state crypto laws, Coinbase is pressing for a single, unified framework that aligns with recent SEC decisions. The outcome of the Oregon case and upcoming congressional debates could shape the next stage of U.S. crypto regulation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.