Coinbase has filed a lawsuit against Oregon’s Governor Tina Kotek and Attorney General Dan Rayfield. The exchange accuses the state of making sudden changes to its cryptocurrency policy without appropriate legal processes or public involvement.
The exchange argues that the state’s actions bypassed necessary rulemaking procedures, which should have included public hearings and opportunities for stakeholder feedback.
Coinbase Says Oregon’s Crypto Reversal Could Criminalize Ordinary Users
On July 11, Coinbase’s Chief Legal Officer, Paul Grewal, criticized Oregon officials for altering their stance on digital assets behind closed doors.
“Oregon Gov. Tina Kotek, AG Dan Rayfield and other state officials flip flopped on digital assets behind closed doors, without hearings or agency rulemaking and public comment. And now they refuse the public records that show this. To right this wrong we are taking them to court,” he stated.
In its filing, Coinbase argued that Oregon previously had no formal cryptocurrency regulations. Instead, the state advised the public to view digital assets like Bitcoin as commodities, similar to gold, rather than securities.
However, the firm noted that the state filed a lawsuit against it in April 2025 that unexpectedly redefined digital assets as securities.
The exchange emphasized that such a major policy change would typically require public hearings and discussions. According to the firm, this should involve input from various industry stakeholders, including the crypto exchanges and digital asset users.
“Typically, such a significant change in public policy would be effectuated through public hearings, debate, and eventual action by Oregon’s elected legislature or, at a minimum, a process for agency rulemaking that involves interested stakeholders,” the firm argued.
Coinbase’s lawsuit also suggests that Oregon’s new approach could negatively affect not only the exchange but also residents who trade or hold digital assets in the state.
The US-based firm argues that this sudden shift may imply that ordinary Oregonians are engaging in illegal transactions. This is despite the state never providing clear guidance or a formal regulatory framework.
Additionally, Coinbase took aim at the state’s legal actions, implying that Oregon’s lawyers might stand to gain from the lawsuit.
The legal action builds on Coinbase’s earlier strong criticism of Oregon’s attempt to revive the “regulation by enforcement” strategy.
This approach marked the Biden-era SEC’s stance towards the crypto industry, but was later rolled back under the current Trump administration.
According to Coinbase, Oregon’s unilateral action undermines growing bipartisan efforts in Washington to establish federal crypto legislation.
The company emphasized that this piecemeal, state-led enforcement approach creates confusion and threatens progress toward clear, nationwide rules for the crypto industry.
“Oregon’s holdout campaign is obstruction for the sake of obstruction. It is a desperate scheme that does nothing to move the crypto conversation forward, and in fact takes us a giant leap backwards from hard-won progress,” the firm concluded.
