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Key Takeaways
- Coinbase is suing Oregon officials for records related to a sudden crypto policy reversal that it says lacked transparency.
- The policy shift led to a state-level lawsuit against Coinbase for allegedly operating without proper registration.
- Coinbase demands public accountability, arguing the decision was made without legislative input or rulemaking procedures.
Coinbase, the largest cryptocurrency exchange in the U.S., has filed a lawsuit against Oregon Governor Tina Kotek and Attorney General Dan Rayfield. The company accuses the state of implementing a sudden and unexplained policy reversal on cryptocurrency regulation—without public hearings or proper rulemaking.
The lawsuit, filed Thursday, seeks access to public records that Coinbase believes could shed light on the motivations and processes behind Oregon’s unexpected change in stance. For years, Oregon had advised that digital assets, including crypto, were not considered securities under state law.
Policy Shift Sparks Legal Battle
In April, Oregon’s attorney general filed a lawsuit against Coinbase, accusing the exchange of failing to register with either the U.S. Securities and Exchange Commission (SEC) or the Oregon Department of Consumer and Business Services. This marked a significant shift from the state’s prior guidance and caught Coinbase off guard.
In response, Coinbase is demanding records that explain how and why the state’s position on digital assets changed. The company alleges that the decision was made behind closed doors and without input from lawmakers or the public.
— paulgrewal.eth (@iampaulgrewal) July 11, 2025
Coinbase Argues Violation of Public Process
Coinbase’s Vice President of Litigation, Ryan VanGrack, criticized the lack of transparency in the state’s actions. “Sunlight is the best disinfectant, and transparency is the hallmark of good governance,” VanGrack said in a statement. He emphasized that such sweeping regulatory shifts should be subject to public scrutiny and legislative debate—not unilateral legal action.
The company argues that Oregon’s actions represent a growing trend of state-level crackdowns that ignore years of established practice and create uncertainty for crypto businesses and users alike.
Also Read: Crypto Today: Metaplanet Eyes Digital Bank, Coinbase Pushes CLARITY Act, Tornado Cash Case Ends
Broader Implications for Crypto Regulation
This lawsuit comes at a time when the regulatory environment for cryptocurrencies in the U.S. remains fragmented and highly contested. While some states seek to promote digital innovation, others are taking a stricter stance—often without clear or consistent guidance.
Coinbase’s legal action underscores the ongoing tension between crypto firms and regulators at both state and federal levels. The outcome of the case could set a precedent for how much transparency states must offer when altering policies that impact digital asset markets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
