Oregon Revives SEC Case Against Coinbase

Coinbase faces a new legal challenge as Oregon's Attorney General prepares to file a securities enforcement action. The state is using arguments previously dismissed with prejudice by the SEC, a move Coinbase calls a "resurrection of the dead."

Coinbase Challenges Oregon's Lawsuit

Coinbase contends Oregon's lawsuit employs outdated arguments, clashing with current technological advancements and public sentiment. The company asserts it will vigorously defend itself while maintaining normal operations in Oregon.

The exchange views this action as directly counterproductive to ongoing bipartisan efforts at the federal level to create clear cryptocurrency legislation. Coinbase argues that federal rules are crucial for domestic crypto businesses to operate legally and prevent states from launching politically motivated lawsuits.

Paul Grewal, Coinbase's Chief Legal Officer, criticized the lawsuit on X (formerly Twitter), calling it "backward" and unproductive for consumer protection or strengthening American leadership in the crypto space. He highlighted that the SEC's previous case against Coinbase was dismissed with prejudice.

Coinbase's blog post labels Oregon's action as a regressive attempt to regulate a global industry through enforcement before Congress establishes clear guidelines. The company suggests Oregon should have awaited federal regulation.

Grewal stated that Oregon's Attorney General's office indicated they are directly continuing where the SEC left off, despite Coinbase offering a blueprint for crypto regulation in March. This highlights the conflicting regulatory landscape facing crypto firms.

Coinbase Assures Business Continuity

Despite the legal challenge, Coinbase assures customers that its Oregon operations will continue as usual. The company considers the lawsuit meritless and maintains confidence in its legal position, labeling the action as politically motivated.

Coinbase characterizes the action as part of a broader "war on crypto" previously led by the SEC. They point to the SEC's recent dropping of several non-fraud lawsuits against crypto companies, including Coinbase, as evidence of a shifting regulatory landscape. The recent pause in the Ripple SEC lawsuit, pending settlement talks, further demonstrates this evolving situation.

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