In a bold move signaling renewed scrutiny of cryptocurrency exchanges, Oregon Attorney General Dan Rayfield has launched a lawsuit against Coinbase, accusing the platform of selling unregistered securities to unsuspecting investors.
Filed in Multnomah County Circuit Court in April 2025, the lawsuit specifically names XRP and 30 other crypto tokens as unregistered securities. The case was initiated to address financial losses affecting Oregon investors directly. Talk about dropping a bombshell. The timing couldn’t be more interesting, coming right after the SEC decided to drop its own case against Coinbase.
The allegations are pretty damning. According to Rayfield, Coinbase built trust with Oregon consumers, then hit them with high-risk investments. One example? The Internet Computer Protocol (ICP) token. It crashed spectacularly from $700 to $72 within a month of its Coinbase launch. Ouch. Many investors turned to stablecoin assets as a safe haven during this period of extreme market volatility.
The lawsuit claims Coinbase operated as an unregistered exchange, broker, and clearing agency all rolled into one. They allegedly connected buyers and sellers, managed trades, and basically ran the whole show without proper registration. Real smooth, Coinbase. The exchange’s role as an intermediary rather than issuer distinguishes it from many other crypto companies facing regulatory action.
What makes this case particularly spicy is that it’s happening at the state level, following the SEC’s retreat from its 2023 charges against the platform. Remember those? The feds accused Coinbase of making billions by illegally facilitating crypto asset securities trading. Now Oregon’s stepping up to fill the enforcement void.
Rayfield isn’t pulling any punches. He compared crypto investments to medical procedures that require risk disclosure. Because apparently, losing your life savings should come with a warning label.
The AG’s office claims Oregonians have suffered “devastating losses” from these unregistered securities.
The lawsuit seeks accountability and stronger consumer protection measures. It’s a shot across the bow for crypto exchanges operating in Oregon, and potentially a blueprint for other states looking to crack down on unregistered crypto securities.
If successful, this case could reshape how cryptocurrencies are classified and regulated at the state level.
