In fact, this action is remarkably similar to a case that the Securities and Exchange Commission (SEC) has since dismissed. This is a pretty remarkable action to take given the rapid shift of the SEC’s regulatory posture. As a result, the agency agreed to drop its original case against the monetary transaction platform. The suit is expected to be filed on April 18.

This action comes over a year after the SEC sued Coinbase in June of 2023 for allegedly operating its platform as an unregistered securities exchange. This move came amid ongoing legal action by 10 US state regulators against Coinbase, filed in June 2023.

Coinbase Prepares to Fight Back

Coinbase’s Chief Legal Officer, Paul Grewal, warned about the upcoming lawsuit on X. He repeated his assurance to customers that the company will be prepared to mount an extremely vigorous defense. He rebuked Oregon for pursuing the case, calling it meritless.

Oregon’s lawsuit, like the SEC’s, is meritless. - Paul Grewal

Grewal further pointed out that three other states have already withdrawn similar lawsuits against Coinbase. That’s a sign that the legal challenge lacks widespread support.

Regulatory Shifts and "Regulation by Enforcement"

SEC’s original lawsuit against Coinbase was thrown out in February 2025, within weeks of former chairman Gary Gensler’s exit. This dismissal suggested a real change on the regulatory front. First, it indicates a potential shift from the current “regulation by enforcement” strategy. This practice has been the bane of the industry for decades.

Oregon’s choice to re-enter the case shows a strong desire to bring this regulatory approach back to life. The “regulation by enforcement” approach is when regulatory standards are established through the actions of enforcers rather than delineated through a standard rule-making process.

Industry Response

Paul Grewal did not hold back in his criticism of Oregon's Attorney General's decision, calling it an "embarrassing waste of Oregon taxpayer dollars." To make matters worse, as he claimed, the arguments that were being made were stale and totally disconnected from what was becoming the new normal.

These hand-me-down arguments are years out of date and defy public opinion, technological progress, and good governance. - Paul Grewal

The implications of the lawsuit are profound for the future of cryptocurrency regulation and striking a balance between aggressive enforcement actions and the provision of obvious, understandable regulatory pathways.