Oregon Attorney General Sues Coinbase, Accusing the Exchange of Violating State Securities Laws

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Oregon Attorney General Dan Rayfield has filed a lawsuit against Coinbase for alleged violations of state securities laws. The suit, announced on April 18, arises from the exchange’s listing of XRP, SOL, ADA and other digital assets without registering them as securities.

The lawsuit is part of an effort by Oregon to take action in an area that federal agencies, under the Trump administration, appear to be avoiding. As the Oregon Department of Justice explained, "States must fill the enforcement vacuum being left by federal regulators who are abandoning these cases under Trump administration."

The lawsuit specifically targets a variety of cryptocurrencies, including XRP, Solana (SOL), Cardano (ADA), Aave (AAVE), Avalanche (AVAX), Uniswap (UNI), and Near Protocol (NEAR). These assets were made available for trading on Coinbase’s platform and Coinbase Prime, according to the state’s complaint.

However, Oregon’s Department of Justice claims that by offering these digital assets, Coinbase treated them as securities without properly registering them.

Coinbase has yet to comment on the specific allegations, but the company has expressed frustration over the case. In a tweet on April 21, Coinbase’s chief legal officer Paul Grewal criticized the lawsuit, suggesting it would create further uncertainty.

As if today’s market downturn weren’t enough, we’re now seeing a slew of meritless lawsuits like this one, which will ultimately serve only to increase legal uncertainty in Web3. It’s a shame that the State is wasting time and taxpayer dollars on this.

— Paul Grewal (@photomacrograph) April 21, 2024

Justin Slaughter, a VP of regulatory affair at crypto investment firm Paradigm, labeled the lawsuit as a “kitchen sink lawsuit” due to the wide range of assets it targets. Slaughter also pointed out that the complaint did not explain why some assets, like wrapped Terra’s token (wLUNA), were included while others, like the original LUNA token, were not.

Legal professionals have weighed in on how this case could impact things. Yarden Noy, a partner at DLT Law, noted that if the court rules these assets as securities, it could create more confusion rather than provide clarity. He said that such a ruling would not set a binding precedent in other cases, not even within Oregon. Noy also highlighted that the lawsuit seems to overlook prior legal decisions, such as the Ripple case, which did not lead to any immediate changes for other tokens.

Now, while the SEC closed its case against Ripple Labs in March of 2025, there is still uncertainty surrounding XRP.

The lawsuit by Oregon, announced on April 18, adds another layer of complexity as state officials take action in an area where federal agencies have largely receded.