Coinbase Sues Oregon Officials Over Digital Asset Policy Reversal

Coinbase, a leading cryptocurrency exchange, has initiated legal proceedings against Oregon state officials, asserting that they have breached state public record laws. The lawsuit, submitted to the Marion County Circuit Court, targets Oregon Governor Tina Kotek and contests the state's management of document requests pertaining to digital asset enforcement actions. Coinbase's Chief Legal Officer, Paul Grewal, accused state officials of reversing their stance on digital assets without conducting proper hearings or seeking public input, and of withholding public records that could illuminate this issue.

The core of the dispute revolves around the state's position on digital assets. Prior to April 2025, Oregon officials had generally not classified digital assets as securities. However, the state's Attorney General's office later filed a lawsuit against Coinbase, claiming that the exchange had offered over 30 tokens as unregistered securities. According to Coinbase, this policy reversal was executed behind closed doors and without adequate public oversight.

Coinbase's lawsuit seeks injunctive relief and alleges that the state has not complied with public record requests, which encompassed over 80,000 emails. The exchange contends that producing these records could take more than a year, further postponing transparency in the state's handling of digital assets. The resolution of this lawsuit could have substantial implications for Oregon's crypto policies and establish a precedent for how other states manage digital asset regulations.

This legal action is part of a broader effort by Coinbase to advocate for transparency in crypto policies. The exchange has a track record of submitting Freedom of Information Act requests to federal agencies, including the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), to gain insights into the government's views on digital assets. Coinbase's advocacy group, Stand With Crypto, is also lobbying for federal legislation related to central bank digital currencies, payment stablecoins, and market structure, which could influence how the exchange operates in the US.

The lawsuit against Oregon officials underscores the ongoing debate over the regulation of digital assets. As the cryptocurrency industry continues to expand, there is an urgent need for clear and consistent policies that balance innovation with consumer protection. Coinbase's legal action in Oregon represents a move towards achieving greater transparency and accountability in the regulation of digital assets.