Is Oregon really this out of touch? Meanwhile, in Washington D.C., the realization is finally dawning that we could be missing out on billions – yes, billions with a B – of economic activity. In the meantime, the Oregon Attorney General is pursuing a misguided lawsuit against Coinbase that will end up costing Oregon taxpayers.

Staking Program: Real Victim Here?

Let's be clear: this lawsuit, scheduled for launch on April 18th, is a copycat of a case the SEC already dismissed. The SEC, under new leadership, dropped its 2023 case against Coinbase, which alleged the exchange was operating as an unregistered securities exchange and illegally selling unregistered securities through its staking program. Now, Oregon wants to revive that corpse? Why? Are Oregon’s attorneys so lacking in creativity they need to bring back baseless arguments that already lost?

The targeting on the staking program is particularly maddening. Furthermore, are we truly suggesting that rewarding users for helping to build out and maintain the network should be illegal? That’s like saying airlines should be barred from providing frequent flyer miles. That’s a better way to incentivize a richer engagement and participation, period. And to pursue it as a securities violation is a flagrant misapplication of the law.

Oregon's Taxpayers: Funding This Folly?

Here's the real kicker: this lawsuit is being funded by your money, Oregon taxpayers. Think about that for a second. Our roads are falling apart, our schools are a mess, and social programs are still stretched thin. In the meantime, the state is throwing good money after bad on a lawsuit related to that lost SEC case. Coinbase's CLO called it an "embarrassing waste of Oregon taxpayer dollars," and I couldn't agree more. How many teachers could that money hire? How many potholes could that money fill? How many more truly needy Oregonians could that money fund? Instead, it's being used to chase a regulatory dragon that's already been slain.

Consider this: The state of Oregon’s budget for the 2023-2025 biennium is approximately $30 billion. A modest legal challenge to a corporate champion like Coinbase could reaaaally add up in legal fees. Personal experience could leave you out hundreds of thousands, if not millions—from attorney costs, your staff time, and expert witness fees. Picture what we could do if we refocused that cash on addressing Washington’s looming homelessness disaster. We’d be tackling a much bigger crisis! Unfortunately that recent data shows that Oregon struggles with the highest homelessness rate in the country. In 2021, thousands of people are still living on streets. Wouldn’t that be a more appropriate and impactful use of taxpayer resources?

Innovation's Chill: Oregon's Message?

This lawsuit threatens to send a chilling message across the entire cryptocurrency industry. That sends a terrible signal to any tech company that might be thinking of relocating to Oregon. It says, "We don't understand your technology, and we're going to use the full force of the law to stifle your innovation." It’s the type of short-sighted thinking that chases businesses and investment out of a state, not to it.

The total global crypto market cap is $2.63 trillion. This isn't some fly-by-night industry. It’s an exciting industry with the promise of new jobs, new revenue, and a new approach to finance. And Oregon is choosing to fight it?

Yet this is precisely what Oregon is attempting to do by trying to regulate the internet in 1995. While the world has moved on, Oregon remains mired in regulatory quicksand. This is not about consumer protection — it’s about protecting the status quo.

SEC Shift: Oregon Ignoring the Memo?

That is precisely why the fact that the SEC, now apparently with more sensible leadership, has backed off should be enough to tell you. The SEC dropped its suit once Gary Gensler exited the agency. This reversal represented a further turn toward an industry-friendly stance. No wonder that three of the ten states that initially sued Coinbase over its staking program have since withdrawn their lawsuits. This amendment followed the SEC’s dismissal of the case from administrative litigation.

Is Oregon really too proud or pigheaded that it can’t acknowledge the writing on the wall?

Congress' Role: Clarity Needed Now

Coinbase is right: we need comprehensive federal legislation for digital assets. This basic patchwork of state-level regulations is a recipe for disaster. It adds confusion, quashes progress, and enables “rogue attacks” such as this one from Oregon. Digital asset legislation appears to have gained bipartisan momentum in Congress. But enough is enough—our elected officials need to get serious and give us predictable rules of the road. A smart framework would ensure that no such wasteful, politically motivated lawsuit ever occurs again.

Oregon’s lawsuit against Coinbase isn’t just about going after one company. It stifles innovation, it undercuts fiscal responsibility, and it imperils the future of finance. It’s time for Oregon to wake up and realize that the digital revolution is now here. If we really want true consumer protection, we need to foster innovation rather than stifle it through misbegotten regulations and counterproductive litigation. If we want change to happen, we need to hold our elected officials accountable. So it’s important to make sure that our tax dollars aren’t being wasted chasing regulatory will-o’-the-wisps.