Coinbase Sues Oregon Over Alleged Breach of Public Record Laws

Coinbase, a leading cryptocurrency exchange, has initiated legal action in the state of Oregon, accusing state officials of breaching public record laws in response to requests for documents pertaining to digital asset enforcement actions. The lawsuit, submitted to the Marion County Circuit Court, targets Oregon Governor Tina Kotek in her official capacity and questions the state government's handling of Coinbase's document requests.

According to Coinbase, state officials had not previously considered digital assets to be regulated as securities until April 2025. However, the Oregon Attorney General's office subsequently filed a lawsuit against Coinbase, alleging that the exchange offered over 30 tokens as unregistered securities. This abrupt change in the officials' stance has sparked concerns about transparency and regulatory consistency.

Paul Grewal, Coinbase's Chief Legal Officer, posted on X that the governor, the attorney general, and other state officials altered their position on digital assets behind closed doors, without public hearings, agency rulemaking, or public comments. Grewal also claimed that these officials are now refusing to disclose public records that would support these assertions, prompting Coinbase to pursue legal action to address this perceived injustice.

The lawsuit alleges that Oregon officials violated state public record laws by failing to produce over 80,000 emails requested by Coinbase, a process that could take more than a year to complete. The impact of this legal action on Oregon's future cryptocurrency policies remains uncertain.

This state-level lawsuit coincides with broader efforts to enact federal cryptocurrency legislation. Coinbase has a history of using Freedom of Information Act requests to seek transparency from U.S. government agencies regarding cryptocurrency policies, particularly from the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC). Coinbase has also been involved in advocating for legislative measures related to central bank digital currencies, payment stablecoins, and market structure, which could significantly influence how the exchange operates in the U.S.

The legal battle in Oregon highlights the ongoing tensions between cryptocurrency exchanges and regulatory bodies, emphasizing the need for clear and consistent regulatory frameworks. As the cryptocurrency industry continues to evolve, such legal challenges are likely to become more frequent, shaping the future landscape of digital asset regulation.