U.S. State Targets Coinbase as Federal Crypto Crackdown Fades

As Washington pulls back on its crypto enforcement, Oregon is stepping up.

State Attorney General Dan Rayfield has filed a lawsuit against Coinbase, accusing the exchange of promoting unregistered crypto assets and exposing local investors to risky financial products without proper safeguards.

The move arrives just months after the U.S. Securities and Exchange Commission dropped its high-profile case against Coinbase, which had alleged the firm operated as an unregistered broker and improperly offered staking services. The SEC’s retreat was part of a broader shift under the new administration, which has scaled down investigations into other major platforms like Kraken, Uniswap, and Consensys.

Rayfield, however, believes states must now fill the void left by federal regulators. He claims Coinbase helped facilitate “high-risk” token sales to Oregonians, leaving consumers vulnerable to fraud. “We believe Coinbase should be held accountable,” he said, pointing to financial losses suffered by residents.

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Coinbase’s legal team responded swiftly, calling Oregon’s action a political maneuver. Chief Legal Officer Paul Grewal argued that the lawsuit undermines national progress toward comprehensive crypto legislation and warned that rogue state enforcement could derail bipartisan efforts in Congress.

While lawmakers in D.C. push forward with digital asset bills—some of which could reach President Trump’s desk by summer—Coinbase says state-level lawsuits only add confusion. “Instead of waiting for a unified regulatory framework, Oregon has decided to go it alone,” Grewal said.

Alexander Stefanov