Oregon Lawsuit Against Coinbase Could Reshape U.S. Crypto Rules

Coinbase has requested that a lawsuit filed by the state of Oregon be moved from state court to federal court, arguing that the dispute involves national-level issues concerning crypto regulation. According to Paul Grewal, Coinbase’s Chief Legal Officer, the company believes such cases must be handled federally, not at the state level.

The lawsuit was initiated by Oregon Attorney General Ellen Rosenblum, who accuses Coinbase of offering crypto products to residents that qualify as unregistered securities under state law. Coinbase denies the allegations, stating that the state’s approach could impact not just the company but the broader U.S. crypto market.

Additionally, Coinbase warns that the case could affect its collaboration with federal agencies like the U.S. Marshals Service in managing seized crypto assets. “If every state acted independently, America’s crypto market would become an unmanageable puzzle,” the company stated.

No final decision has been made yet regarding court jurisdiction, but the outcome of this case could shape how cryptocurrencies are regulated in the United States in the long term.