Oregon Attorney General Dan Rayfield is taking matters into his own hands when it comes to crypto enforcement and raising larger questions of what role states will play on this issue under a Trump administration.
Rayfield filed a suit Thursday against Coinbase, the country's largest cryptocurrency exchange, alleging the company "encouraged and helped the sale of unregistered cryptocurrencies" to Oregon residents.
"Attorney General Rayfield says the states must fill the enforcement vacuum being left by federal regulators who are giving up under the new administration and abandoning these important cases," Rayfield's office wrote in a press release.
His office refers to the Securities and Exchange Commission (SEC)'s move to drop its case against Coinbase, as well as a number of suits against other crypto-related companies.
Those moves were part of the Trump administration's larger tone shift on crypto, which seeks to move away from the "regulation by enforcement" theme seen under the former Biden administration.
Coinbase Chief Legal Officer Paul Grewal claimed Oregon is attempting to "revive regulation by enforcement" in a blog post.
"As everyone knows, the war against crypto waged by the previous SEC and its allies is over—crypto won," Grewal wrote. "The SEC finally caught up with the reality that the vast majority of digital assets are not securities—and that there is widespread public support for this revolutionary technology."
He claimed Rayfield "refuses to face that reality" and maintained the suit is over "stale, repeatedly refuted theories" that were "disavowed" with the SEC's dismissed case against Coinbase.
Earlier this month, Illinois dropped its suit against Coinbase, making Wisconsin one of the last four states banning crypto staking as a result of the ongoing litigation against the company.
Crypto staking involves temporarily locking up a certain amount of cryptocurrency to participate in a blockchain network.
Coinbase estimates the ban has cost its customers millions of dollars since June 2023.
"Oregon’s lawsuit directly undermines constructive policymaking happening in DC," Grewal added.
Rayfield's argument raises further questions over whether more action could take place at the state level as the Trump administration turns the page.
