Oregon filed a lawsuit against Coinbase on Friday, accusing the crypto exchange giant of violating state securities law by driving and promoting the sale of cryptocurrencies as unregistered securities. 

In a statement, the state’s attorney general accused Coinbase of earning “millions of dollars in fees as Oregonians have faced huge losses…in a market that’s stacked against them.”

 “I am committed to protecting Oregon’s investors so they’re not taken advantage of,” Oregon Attorney General Dan Rayfield said.

The suit comes even as the U.S. federal government has ratcheted back enforcement action against Coinbase and other major exchanges. In February, the U.S. Securities and Exchange agreed to drop its lawsuit against the exchange for violating securities law. But states have the option to pursue their own legal actions. 

In a post on its website, Coinbase Chief Legal Officer Paul Grewal slammed the Oregon suit as “desperate” and a revival of “regulation by enforcement.”

“The U.S. showed it was ready to turn the page on that dark, misguided chapter of unlawfully targeting the industry,” Grewal wrote. “But Oregon’s Attorney General refuses to face that reality and is trying to fight the same war all over again.”

He added: “Let there be no doubt: Oregon’s lawsuit, like the SEC’s, is meritless, and Coinbase will do whatever is required to beat it.” 

During the Biden Administration, then SEC Chair Gary Gensler cracked down on the crypto space—filing lawsuits against Coinbase, Kraken, and Binance. Critics accused the agency of being heavy-handed and hindering progress. 

But following the election of President Donald Trump, who promised to support the industry during his campaign, the environment improved dramatically for digital asset related businesses. 

The SEC now has launched a crypto task force, which the regulator says will work to provide clear rules for the fast-moving and often complex space. 

Edited by James Rubin