Oregon’s Attorney General warned Coinbase today, April 18, that it will bring a securities enforcement action against the company. This news was shared directly by Coinbase’s Chief Legal Officer, Paul Grewal on Twitter. This move comes in the wake of a widely reported recent turn by the Securities and Exchange Commission (SEC) away from a harsh, prohibitionary approach to crypto regulation. Even the lawsuit itself has already been attacked — by Coinbase — which is already gearing up to defend what they are calling a “meritless” case.
Coinbase's Chief Legal Officer, Paul Grewal, expressed his disappointment with the Oregon Attorney General's decision. He took issue with the administration’s decision to file a lawsuit at all – particularly in light of recent agreements. The company views this action as a step back from the "constructive policymaking happening in DC."
Coinbase Faces New Legal Challenge
The Oregon Attorney General's lawsuit is seen by Coinbase as a "copycat case" of the SEC's lawsuit. This is significant because the SEC had sued Coinbase earlier in 2023, accusing the company of running a platform that acted as an unregistered securities exchange. The SEC’s enforcement action against Coinbase alleged that Coinbase unlawfully sold unregistered securities to customers through its staking program.
The lawsuit comes on the heels of a period of turmoil at the SEC. The Commission, with new acting chair Mark Uyeda at the helm, has moved swiftly and aggressively. It quashed several different crypto litigations and investigations related to companies like Gemini, Binance, Uniswap Labs, and Robinhood. These dismissals don’t include actions taken under the pro-industry Trump administration.
literally picking up where the Gary Gensler SEC left off - Paul Grewal
SEC's Previous Allegations Against Coinbase
In the SEC’s lawsuit against Coinbase, the agency targeted the centralized nature of Coinbase’s staking program as a clear example of an unregistered securities exchange. The SEC's lawsuit against Coinbase was dismissed in February 2025, following the departure of the SEC's former chairman, Gary Gensler, and the implementation of a new regulatory approach.
In June 2023, 10 US state regulators sued Coinbase. Those states are Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin. Taken together, these lawsuits and the SEC’s recent action have made it a confusing legal environment for the crypto exchange.
Coinbase’s CPO, Faryar Shirzad, has a long history of nuclear strong-arming in favor of crypto’s clearest possible legislation. He argues that base regulation is important to defend against the "rogue attacks" that could undermine the burgeoning industry.
Coinbase's Response and Future Strategy
Coinbase hasn’t given up hope yet, though — it promised its customers that it plans to “fight tooth and nail” against Oregon Attorney General’s lawsuit. Under Armour has consistently stated that the lawsuit has no merit and is more reflective of a failed plaintiff’s outdated arguments.
These hand-me-down arguments are years out of date and defy public opinion, technological progress, and good governance - Paul Grewal
Coinbase's CLO considers the Oregon Attorney General's decision an "embarrassing waste of Oregon taxpayer dollars." He has said that the lawsuit is a major step backward for the discussion on how cryptocurrencies should be regulated.
