Coinbase has decided to take legal action against Oregon Governor Tina Kotek. This follows a sudden policy change that reclassified 31 crypto assets as securities. The shift has led the exchange to pause several services in the state, affecting hundreds of thousands of users.
The lawsuit, filed in Marion County, demands public records explaining the state’s decision. Coinbase insists that the policy contradicts previous guidance and was made behind closed doors, without public input or legislative debate.
Coinbase’s Chief Legal Officer Paul Grewal shared on X that the Governor Tina Kotek, Attorney General Dan Rayfield and other state officials altered digital assets classification behind closed doors without any public comments. They are not even showing it in any public records and “To right this wrong we are taking them to court,” Paul Said.
A Sharp Policy U-Turn
In April this year, Oregon Attorney General Dan Rayfield filed a securities enforcement action against Coinbase. The charges accused the platform of offering unregistered digital assets to Oregon residents. As a result, the lawsuit claimed, consumers were exposed to scams and pump-and-dump risks. This surprised many, especially since Oregon had previously stated that crypto did not fall under its securities law.
Besides, the timing of the case raises eyebrows. Federal regulators under the Biden administration had brought similar charges in 2023, which were later dropped under the Trump administration. Notably, Oregon is the only state pursuing such charges against Coinbase.
Coinbase Pushes Back Hard
Coinbase has argued that any major change in crypto policy should go through open legislative procedures. Moreover, the company accused Oregon’s legal team of attempting a “regulation-by-ambush” to profit from the lawsuit. Vice President of Litigation, Ryan VanGrack, called the lawsuit deeply unfair to Oregon residents, who can no longer access certain crypto services.
Additionally, federal lawmakers are working on the CLARITY Act and the GENIUS Act, which aim to standardize digital asset regulation. These bills have bipartisan support and could prevent such state-level overreach.
Meanwhile, Coinbase recently brought on board crypto influencer AlexOnchain to help enhance transparency and improve communication with the public. With this, Coinbase aims to reshape its image and solidify its position in crypto.
Also Read: Coinbase Was Days From Collapse: Armstrong & Litecoin’s Lee Tell All
