Coinbase is fighting back against a lawsuit from the state of Oregon, arguing that the case should be handled in federal court and not at the state level. The crypto exchange says the case deals with national issues that could affect how digital assets are regulated across the U.S.
Paul Grewal, Coinbase’s Chief Legal Officer, explained the company’s stance on X (formerly Twitter), saying, “Federal issues belong in federal court.”
He accused Oregon of trying to sidestep broader federal decisions about crypto by keeping the case in a state court. “This would be a huge step backward that only hurts consumers,” he added.
Why Is Oregon Suing Coinbase?
Earlier this year, Oregon Attorney General Ellen Rosenblum sued Coinbase, claiming it broke state laws by offering unregistered securities to Oregon residents. This move is part of a wider effort by some U.S. states to take the lead on crypto regulation as they feel the federal government hasn’t done enough.
But Coinbase says Oregon is overstepping. The company argues that this lawsuit challenges national standards on how digital assets are treated, especially regarding whether they count as securities under federal law.
Coinbase’s Federal Role at Risk
Coinbase also said that it helps the U.S. Marshals Service manage seized crypto assets, and that Oregon’s lawsuit could make it harder for the government to rely on Coinbase for those services. “If every state did this, the U.S. Marshals wouldn’t have a reliable national platform,” the company said.
Bigger Picture: Federal Shift Underway
Coinbase’s argument is backed by recent federal moves to clarify crypto rules. Earlier this year, the SEC dropped its own lawsuit against Coinbase and announced plans for clearer guidelines. Meanwhile, Congress is working on new legislation that could finally define how digital assets are handled across the country.
For now, the court hasn’t decided whether Oregon’s case will stay in state court or be moved to federal court. But the outcome could shape how crypto regulation works in the U.S. for years to come.
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FAQs
Oregon’s Attorney General sued Coinbase, alleging it violated state laws by offering unregistered securities to Oregon residents, part of a broader state effort to regulate crypto.
Coinbase claims the lawsuit could hinder its ability to help the U.S. Marshals Service manage seized crypto, disrupting a reliable national platform.
The outcome of the Oregon vs. Coinbase lawsuit could significantly influence the future of crypto regulation in the U.S., shaping state versus federal authority.
