Oregon accuses Coinbase of selling unregistered securities, sparking a legal clash as the exchange denounces the suit as “meritless.

Coinbase, the crypto exchange once buoyed by a regulatory thaw under the Trump administration, now faces fresh legal fire this time from Oregon. The state’s attorney general filed suit on Friday, alleging the platform illegally peddled unregistered securities while pocketing fees from investors who suffered steep losses.

“Coinbase’s actions have left Oregonians in a rigged game,” said Attorney General Dan Rayfield, positioning the lawsuit as a shield for retail traders. The move echoes the aggressive posture of the SEC under Gary Gensler, though federal regulators had backed off Coinbase earlier this year.

The exchange’s chief legal officer, Paul Grewal, fired back, branding the suit a “desperate” rerun of failed tactics. “Oregon’s AG is stuck in 2023,” he wrote, accusing the state of ignoring the industry’s shifting legal landscape. Coinbase pledged to fight the case, calling it a “meritless” distraction.

The lawsuit revives a fraught debate: Are cryptocurrencies securities, subject to strict oversight, or a new asset class demanding tailored rules? Oregon’s gamble underscores the patchwork of state-level risks still haunting crypto firms even as Washington pivots toward clearer (and friendlier) guidelines.

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For now, the clash signals that Coinbase’s regulatory battles are far from over, no matter who sits in the White House.