Key Takeaways
- Coinbase alleges Oregon secretly reversed its stance on bitcoin regulation without public input.
- The company seeks court-ordered disclosure of state documents explaining the policy change.
- The dispute arises as Congress debates federal bills establishing national digital asset standards.
Coinbase, one of the largest U.S. bitcoin exchanges, has initiated legal action against Oregon Governor Tina Kotek and Attorney General Dan Rayfield.
The company alleges that Oregon officials abruptly changed the state’s digital asset policy behind closed doors and have refused to release public records explaining the decision.
The lawsuit
The lawsuit was filed after the state of Oregon sued Coinbase earlier this year, claiming the company sold unregistered digital assets to residents.
Previously, Oregon officials had maintained that bitcoin and similar assets were not regulated as securities within the state.
Suit against Coinbase
In April, Oregon’s Attorney General filed suit against Coinbase, citing failure to register with both the SEC and Oregon regulators.
This action mirrored a 2023 federal lawsuit led by the SEC under the Biden administration, which was later dropped.
Coinbase claims the state’s reversal represents a major, unexplained policy shift.
The company stated in its legal filing that the change occurred “entirely behind closed doors” without public hearings or legislative input. Coinbase is now asking the court to force disclosure of records that could clarify the state’s motivations and whether outside influences played a role.
Transparency
Ryan VanGrack, Coinbase’s VP of Litigation, has argued that Oregonians deserve transparency:
“Oregonians deserve to know why their government is keeping them in the dark — and why they’re pursuing a case that would deprive Oregonians (and only Oregonians) from trading crypto.”
Paul Grewal, Coinbase’s Chief Legal Officer, also criticized the state for its lack of transparency and for reviving arguments that had already been dismissed at the federal level. Grewal commented:
“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.”
This legal dispute comes as Congress considers the CLARITY Act and GENIUS Act, which would establish federal standards for digital asset regulation. Coinbase argues that Oregon’s actions undermine these efforts toward national clarity.
