{"id":35311,"date":"2025-07-05T07:16:35","date_gmt":"2025-07-05T07:16:35","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=35311"},"modified":"2025-07-05T07:16:35","modified_gmt":"2025-07-05T07:16:35","slug":"oregon-vs-coinbase-ag-files-motion-to-keep-gensler-era-copycat-lawsuit-in-state-court","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=35311","title":{"rendered":"Oregon Vs Coinbase: AG Files Motion To Keep \u2018Gensler-Era Copycat Lawsuit\u2019 In State Court"},"content":{"rendered":"
\n

Oregon\u2019s Attorney General (AG) has filed a motion to keep the lawsuit against Coinbase in state court, following the crypto exchange\u2019s efforts to move the litigation to federal court.<\/p>\n

Oregon Says Coinbase Case Must Stay In State Courts<\/h2>\n

On July 2, Oregon\u2019s Attorney General, Dan Rayfield, filed<\/a> a motion to remand its lawsuit against Coinbase back to the Circuit Court of the State of Oregon for Multnomah County. The motion follows the crypto exchange\u2019s attempt to move the case to federal court.<\/p>\n

In early June, Coinbase filed a notice of removal, seeking to take the action from the Oregon courts to federal court, arguing that the case<\/a> raises a federal question. The exchange argues that Oregon\u2019s state law (OSL) claims \u201carise under\u201d the federal law because the state\u2019s courts use the federal Securities Act of 1993, and the federal Howey Test, for guidance to define what constitutes an \u201cinvestment contract.\u201d<\/p>\n

However, Oregon\u2019s motion explains that \u201calmost 50 years ago, the Supreme Court of Oregon, sitting en banc<\/em>, broke stride with Howey <\/em>in its interpretation of an \u2018investment contract\u2019 under the OSL, deciding the term should be \u2018modified\u2019 to encompass a broader range of investment schemes. Pratt v. Kross<\/em>, 276, Or. 483, 497 (1976).\u201d<\/p>\n

\"Coinbase\"<\/p>\n

Since then, Oregon courts have followed the Pratt<\/em> Test, which applies a broader definition of investment contract. The AG noted that \u201cbecause Oregon does not strictly follow the Howey <\/em>test, the State\u2019s claims here do not turn on the Howey <\/em>test.\u201d<\/p>\n

The motion claims that the lawsuit isn\u2019t a \u201cregulatory land grab,\u201d as Coinbase called it. Instead, it is a \u201cquintessential state law action\u201d that seeks redress on behalf of Oregonians under the state\u2019s law. Therefore, it should be \u201cadjudicated by the state court in which the Attorney General filed it.\u201d<\/p>\n

Oregon\u2019s \u2018Gensler-Era\u2019 Lawsuit<\/h2>\n

On April 18, Oregon\u2019s AG filed a complaint in Multnomah County Circuit Court against Coinbase, alleging the crypto exchange had violated the Oregon securities law by facilitating the sale of unregistered cryptocurrencies to the state\u2019s residents.<\/p>\n

As reported<\/a> by Bitcoinist, the lawsuit states that the exchange \u201chas continuously and repeatedly violated the Oregon Securities Law, which ascribes liability to persons \u00b4who [s]ell[] or successfully solicit[] the sale of a security \u2026 in violation of the Oregon Securities Law\u2019 (ORS 59.115(1)(a)), as well as to persons who \u2018participate[] or materially aid[] in the sale\u2019 (ORS 59.115(3)).\u201d<\/p>\n

Following the news, Coinbase\u2019s CLO, Paul Grewal, affirmed that Rayfield is \u201cliterally picking up where the Gary Gensler SEC left off,\u201d adding that the lawsuit is a \u201ccopycat case\u201d attempting to \u201cresurrect\u201d the Securities and Exchange Commission\u2019s (SEC) long-criticized regulatory approach under the previous administration.<\/p>\n

The SEC sued Coinbase in June 2023, affirming that the platform operated as an unregistered broker-dealer and illegally sold unregistered securities through its staking program. However, the lawsuit was dismissed<\/a> in February 2025 following the establishment of the agency\u2019s Crypto Task Force.<\/p>\n

Oregon\u2019s lawsuit now claims that Coinbase sold high-risk investments without properly vetting to protect consumers, which has caused significant losses for Oregonians. Notably, the case covers significantly more tokens than the SEC originally named in its case, which listed 13 tokens. The lawsuit claims that the crypto exchange offered and sold 31 cryptocurrencies as investment contracts.<\/p>\n

In a Wednesday post<\/a>, Grewal called out Rayfield for attempting to send his \u201cGensler-era copycat\u201d lawsuit back to state courts, affirming that it goes against the US\u2019s recent progress developing a clear and unified framework for the industry.<\/p>\n

\n

In most places, it\u2019s 2025. But the Oregon AG still thinks it\u2019s 2023 with his Gensler-era @secgov copycat suit. Yesterday, he asked the federal court to send the case back to his home state court. This pursuit of a patchwork of state regulation \u2013 especially against the historic progress towards a unified federal framework \u2013 only helps politicians and harms consumers.<\/p>\n<\/blockquote>\n

\"Coinbase,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Oregon\u2019s Attorney General (AG) has filed a motion to keep the lawsuit against Coinbase in state court, following the crypto exchange\u2019s efforts to move the litigation to federal court. Oregon Says Coinbase Case Must Stay In State Courts On July 2, Oregon\u2019s Attorney General, Dan Rayfield, filed a motion to remand its lawsuit against Coinbase […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-35311","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35311"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35311\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}