Coinbase files a lawsuit against Oregon officials over abrupt shift in the state’s cryptocurrency policy

Coinbase has filed a lawsuit against Oregon officials, specifically targeting Governor Tina Kotek and Attorney General Dan Rayfield, over an abrupt shift in the state’s cryptocurrency policy.

In the lawsuit filed late Thursday, the company accused the governor and other state officials of changing their position on digital assets without traditional hearings or sparing time for agency rulemaking and public comment.

Ryan VanGrack, vice president of litigation at Coinbase, said the agenda that Oregon AG Dan Rayfield is pushing has the potential to make out-of-state law firms wealthy at the expense of local residents looking to trade digital assets.

VanGrack asked important questions, like why Governor Kotek is refusing to provide basic information about the case, including why the state suddenly changed its views on crypto.

“Oregonians deserve to know why their government is keeping them in the dark — and why they’re pursuing a case that would deprive Oregonians (and only Oregonians) from trading crypto,” VanGrack said.

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— paulgrewal.eth (@iampaulgrewal) July 11, 2025

Coinbase thinks Oregonians deserve the truth from their government

The lawsuit comes after the state attorney general, Mr. Rayfield, dragged Coinbase to court in April, accusing it of skirting state and federal law for failing to register with the U.S. Securities and Exchange Commission or the Oregon Department of Consumer and Business Services.

There has been little progress on the case, and Coinbase is looking to get it dismissed. In its Thursday filing, the company highlighted how, for years, Oregon state officials advised its residents that digital assets — like cryptocurrency — are “not regulated” as state securities.

However, their sentiments changed in April, and with the support of New York and D.C. attorneys, the state sued Coinbase, accusing it of operating illegally due to not having registered.

If Oregon emerges victorious, out-of-state firms stand to gain 20% to 30% of any money recovered in the lawsuit. Coinbase claims in its filing that there was no law passed by the Oregon Legislature to regulate digital assets, and Oregonians deserve answers from their state government.

The legal battles between Oregon and Coinbase are occurring at a critical time when there is bipartisan support for legislation imposing some regulations on crypto.

Congress will vote on the CLARITY Act and the GENIUS Act in the coming week, and both are expected to promote transparency and regulation in the digital asset industry, setting up some requirements and guidelines to better protect consumers.

Recent regulatory advancements have helped Coinbase’s stock

Coinbase’s stock has performed strongly, with a 50.25% increase over the past month and a 75.49% rise over the last year.

The stock hit a new all-time high of $389.06 on July 10, 2025, inspired by bullish crypto market trends, including Bitcoin surging past $117,000, and positive regulatory developments like the GENIUS Act, which has provided a regulatory framework that could foster growth in the crypto industry.

The company has also secured a Markets in Crypto License (MiCA), which has expanded its operational capabilities and market reach in Europe.

While its strategic initiatives have positioned it as a leader in the crypto exchange market and its commitment to regulatory compliance, the company’s proactive approach to addressing market challenges is what has earned it the trust of investors and users alike.

Mark Palmer, an analyst at Benchmark, reiterated his “buy” rating on Coinbase in June, elevating his price target from $301 to a significant $421. The bullish stance follows similar optimism from Cantor Fitzgerald, whose analysts last month reaffirmed their “overweight” rating on Coinbase’s stock, while simultaneously raising their 12-month price target from $253 to $292.

Palmer tagged the recent bipartisan passage of the GENIUS Act in the U.S. Senate as a catalyst for Coinbase’s growth, as the company has an enduring partnership with Circle, the issuer of the USDC stablecoin, and is poised for direct and substantial benefits should the bill be signed into law.

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