Coinbase has petitioned a federal court to transfer a lawsuit filed by Oregon Attorney General Dan Rayfield, arguing that the case mirrors a previously dismissed federal action and should be adjudicated at the national level.
In a motion submitted on June 2 to a Portland federal court, Coinbase contended that Rayfield’s lawsuit, which accuses the exchange of selling unregistered securities to Oregon residents, oversteps state authority and encroaches upon federal jurisdiction. The company described the suit as a “copycat” of the Securities and Exchange Commission’s (SEC) 2023 case, which was dropped in February amid a broader federal retreat from crypto enforcement.
“Dissatisfied with the federal government’s recent enforcement decisions, Oregon’s new Attorney General has set out to dictate the future of digital assets and the nationwide platforms on which they trade — on his chosen terms, timing, and turf,” Coinbase stated in its filing.
Rayfield initiated the lawsuit in April, asserting that Coinbase offered high-risk investments without proper vetting, thereby exposing consumers to potential fraud. He emphasized the necessity for state intervention, citing a perceived enforcement gap left by federal regulators under the current administration.
Coinbase’s Chief Legal Officer, Paul Grewal, highlighted that the issues raised in Oregon’s complaint, such as the definition of “investment contract,” are fundamentally federal matters and should be resolved in a federal court.
The company also noted that attempts to engage with Rayfield prior to the lawsuit were rebuffed, despite being given a 48-hour notice of the impending legal action.
This legal maneuver by Coinbase underscores the ongoing tension between state and federal authorities over the regulation of digital assets, as the crypto industry seeks a unified national framework.
