Just In: Coinbase Sues Oregon Officials Over Sudden Crypto Policy Reversal

Coinbase has filed a lawsuit against Oregon’s top officials, including Attorney General Dan Rayfield and Governor Tina Kotek. The company claims that Oregon’s sudden change in policy regarding cryptocurrency is the result of behind-the-scenes decisions, without public hearings or proper rulemaking processes.

The lawsuit, filed on Thursday, seeks to obtain records under Oregon’s public records law to understand the reasons for this abrupt policy shift.

Coinbase Seeks Transparency from Oregon Officials

In its legal filing, Coinbase requests detailed documentation about the state’s sudden reversal on cryptocurrency policy. For years, state officials had advised Oregon residents that digital assets, including cryptocurrency, were not regulated as securities.

In April, however, the Oregon Attorney General filed a lawsuit against Coinbase, claiming that by not registering with the U.S. Securities and Exchange Commission (SEC) or the Oregon Department of Consumer and Business Services, the exchange had acted illegally.

Coinbase argues that the state’s decision came unexpectedly, without any legislative action or public discussion. The company contends that Governor Kotek and other officials should provide transparency about the rationale behind the policy change.

“Sunlight is the best disinfectant, and transparency is the hallmark of good governance,” said Ryan VanGrack, Vice President of Litigation at Coinbase.

Legal Battle with Oregon Follows Federal SEC Dismissal

The lawsuit against Coinbase in Oregon follows the dismissal of a similar case by the SEC in 2023. The SEC had accused Coinbase of violating securities laws by trading unregistered securities.

However, that case was dropped under the Biden administration in 2023, and no other state has followed Oregon’s lead in taking legal action against Coinbase.

In April, Oregon filed its own lawsuit, claiming that Coinbase’s cryptocurrency platform operated illegally in the state by offering unregistered securities to its residents. Coinbase maintains that no law was passed in Oregon to regulate digital assets. The company also points out that Oregon’s legal action contradicts the stance of other states, which have not taken similar steps.

Pending Legislation Affects Crypto Regulations

The legal actions against Coinbase in Oregon come at a time when federal lawmakers are considering new legislation to regulate digital assets. The CLARITY Act and the GENIUS Act will be voted on in Congress and will help develop more transparent regulations in the cryptocurrency sphere. These bills are expected to provide transparency and consumer protections in the digital asset space.

Ryan VanGrack expressed concerns that Oregon’s lawsuit contradicts the federal government’s approach. “I can’t imagine a more illogical time for a state to insert itself when the federal government made it very clear it is their domain,” he stated. Both the Clarity Act and the GENIUS Act have bipartisan support and could shape the future of cryptocurrency regulations.

As of now, officials from Governor Kotek’s and Attorney General Rayfield’s offices have not responded to requests for comment regarding Coinbase’s lawsuit and public records request.