XRP Claims Victory, SEC Retreats—But Coinbase Faces Fresh Fire in Oregon

Just weeks after the SEC dropped its high profile case against Coinbase and XRP won a big win in court, the Oregon Attorney General has launched a new lawsuit against the exchange. This Coinbase lawsuit has reignited concerns about the patchwork of crypto enforcement in the US where state and federal actions are increasingly out of sync.

SEC Retreats, But Oregon Doubles Down

In early April, the SEC reportedly dropped its federal enforcement action against Coinbase without providing a formal resolution to its original claims that the exchange was an unregistered securities broker. The dismissal came as part of a broader shakeup at the SEC including the reassignment of its top crypto enforcer and the appointment of former industry figure Paul Atkins as chairman.

Just after that, the judge in the Coinbase vs SEC case granted Coinbase’s motion for an interlocutory appeal and stayed the proceedings to allow the Second Circuit to answer the question: Do digital asset transactions on Coinbase constitute “investment contracts” under the Howey test? Things seemed to be going Coinbase’s way, until Oregon stepped in.

Oregon Says Coinbase Violated State Securities Laws

Oregon’s Attorney General Ellen Rosenblum filed a complaint on April 18, alleging that Coinbase violated the state’s securities laws by selling what it claims are unregistered securities. The complaint also challenges the legality of arbitration clauses and class action waivers in the company’s user agreements saying ‘they diminish consumer protections.

“The Coinbase lawsuit reflects our commitment to protecting Oregonians’ financial interests in a rapidly changing market,” said a spokesperson for the AG’s office.

The filing cites Oregon Revised Statute 59.331 which allows the state to restrict or stop business practices it believes are in conflict with the state’s investor protection laws. The complaint seeks a cease and desist order, penalties and restrictions on Coinbase’s activities in the state.

Coinbase Fires Back: “Politically Charged and Opportunistic”

Paul Grewal, Coinbase’s Chief Legal Officer, was quick to respond. In a post on X (formerly Twitter) he called out the lawsuit’s selective legal reasoning and accused Oregon of ignoring key federal developments.

“If there were any doubt about the motivation behind it, look no further than section 9, where it 1) omits Judge Failla’s order granting interlocutory appeal of the @SECGov case; 2) omits any mention of Judge Torres’ decision in XRP; and 3) bears the stamp of the two private law firms brought on to profit from this suit”

He also pointed out what he called “weaponized rhetoric” in the filing, noting that the complaint calls SEC Chairman a “crypto lobbyist” and mocks the reassignment of the former lead crypto attorney to the SEC’s IT department.

“These are not the hallmarks of a good faith lawsuit,” Grewal said. “It’s narrative driven litigation wrapped in policy theatre.”

The Ripple Effect: XRP Ruling Resonates

Adding to the industry’s shifting legal landscape is Ripple’s recent win in its long running case with the SEC. Judge Analisa Torres has previously ruled that XRP sales on public exchanges did not qualify as securities. In March 2025, the SEC reportedly dropped its own appeal, effectively conceding the point and signaling a broader pullback under new leadership.

Sources say Coinbase and other exchanges have been using the XRP ruling to defend their token listings, arguing that if XRP doesn’t meet the Howey test, many other digital assets don’t either.

However, Oregon is going its own way. Unlike the SEC which now seems open to regulatory clarity through Congress, the Oregon complaint is a return to the aggressive enforcement days of 2022.

State vs. Federal: A Fragmented Regulatory Landscape

The Coinbase lawsuit from Oregon is a reminder of the decentralized nature of crypto regulation in the US. While federal regulators are reevaluating their position under political pressure and industry lobbying, states like New York and now Oregon are going their own way.

“It’s like fighting 50 different battles at once,” said Kristin Smith, CEO of the Blockchain Association, in a recent interview with Bloomberg. “Coinbase’s case proves why we need federal legislation.”

Indeed despite recent wins at the federal level, crypto companies are still vulnerable to state level actions that can undermine broader regulatory clarity. The Coinbase lawsuit is a reminder that wins in Washington don’t protect them on Main Street.

Bottom Line: Relief or State-Led Chaos?

As the SEC backs off, legal experts predict more states will step in to fill the void. 

“If the SEC is backing off and Congress is slow to act, don’t be surprised if we see more headlines like this from state regulators,” said Jake Chervinsky, Chief Legal Officer at Variant Fund. “This is a political football now.”

Oregon’s Coinbase lawsuit proves the war is far from over. The industry is now in a world where state and federal priorities are in opposite directions. For Coinbase, this lawsuit could set a new standard or be the latest chapter in the crypto legal saga.

FAQs

What is the Coinbase lawsuit in Oregon about?

Oregon is suing Coinbase for selling unregistered securities and consumer-unfriendly terms in user agreements.

Did the SEC drop its case against Coinbase?

Yes. The SEC filed to dismiss its federal case against Coinbase in early April 2025.

What does the XRP ruling have to do with this?

The XRP ruling is a key defense in similar cases, including Coinbase’s. Oregon’s lawsuit doesn’t mention it.

Why is Coinbase calling the lawsuit political?

Coinbase’s legal chief Paul Grewal says the complaint is opportunistic and omits major legal precedents, implying politics.

Could other states sue crypto firms like Oregon?

Yes. With federal enforcement slowing down, more states will step up crypto regulation and make it even more complicated.

Glossary

Howey Test: A legal framework to determine if a transaction is an “investment contract” and thus a security under US law.

Interlocutory Appeal: A legal process to appeal a ruling before the case is done at the trial level.

Revised Statute 59.331: Oregon’s law to enforce securities violations within the state.

Arbitration Clause: A ‘contract clause to force disputes to be resolved through arbitration rather than court.

SEC: US Securities and Exchange Commission, the federal agency that oversees securities ‘markets and investor protection.

References

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