PORTLAND, Ore. (KOIN) – One of the largest cryptocurrency companies in the United States has filed a court order aiming to stop what the company calls a “politically motivated” lawsuit brought by the State of Oregon.

The crypto company, Coinbase, filed the stop order July 11 in Marion County Circuit Court against Oregon Governor Tina Kotek.

The order comes after Oregon

Attorney General Dan Rayfield filed a lawsuit against the company in April, alleging Coinbase violated Oregon securities law by promoting and selling high-risk investments, which led to “devastating” losses for Oregon investors.

In one example, the Internet Computer Protocol cryptocurrency – which the Securities and Exchange Commission previously identified as an unregistered security – dropped in price from $700 to $72 in one month after launching on Coinbase, according to Rayfield, noting, the coin now trades at around $7 a share – wiping out billions of dollars in investors’ money.

Firing back against the lawsuit, Coinbase filed a stop order, alleging that the state has changed course on how it views cryptocurrency and claims Attorney General Rayfield has not been transparent about retaining outside legal counsel.

“For years, the State of Oregon advised the public that digital assets, including cryptocurrencies, are ‘not regulated’ by the State as securities and should be viewed as commodities ‘similar . . . to gold.’ But in April 2025, the State changed course―abruptly and without explanation or public input―by suing Coinbase, the leading crypto technology platform in the United States, based on the assertion that the trading of 31 digital assets on its platform qualified as regulated securities transactions. Although Coinbase is its target, the Attorney General’s lawsuit implicates the hundreds of thousands of Oregonians who hold and trade digital assets—and who the Attorney General now contends engage in illegal securities transactions,” the stop order claims.

“Typically, such a significant change in public policy would be effectuated through public hearings, debate, and eventual action by Oregon’s elected legislature or, at a minimum, a process for agency rulemaking that involves interested stakeholders. But this major shift in state policy occurred entirely behind closed doors. And while Oregonians were kept out of this process, plaintiffs’ lawyers from New York and Washington, D.C., hoping to reap millions of dollars in profit, appear to have driven the State’s strategy of regulation-by-ambush,” the order continues.

In the stop order, Coinbase does not challenge the merits of Oregon’s lawsuit – rather, the company says it’s focused on transparency.

“The merits and propriety of the Attorney General’s claims against Coinbase are not at issue here; they will be resolved in federal court. This action, instead, concerns a more basic question about public records as to which this Court has exclusive jurisdiction: Can Oregon flout its obligations to Oregonians under state law to disclose the public records behind its new position that was adopted without public involvement and without visibility into the process that purportedly authorized it?” the order questions.

“The Oregon Public Records Law demands such foundational transparency. But when Coinbase confronted the State with straightforward public records requests, the State’s response was to stonewall. One state agency claimed it would take 31 years and $2.4 million to review and produce the documents Coinbase requested. Governor Tina Kotek’s office similarly chose obstruction over transparency, asserting that Coinbase’s public records requests were ‘not in the public interest.’ Worse yet, the Governor’s office invoked erroneous exemptions, including those related to ‘information about an individual’s health,’ and provided no timeline for compliance―disregarding its legal obligations and the hundreds of thousands of Oregonians who buy, sell, and own the digital assets affected by the State’s unexplained and secretive regulatory stance,” the order claims.

In a statement regarding the order, Coinbase Vice President of Litigation Ryan VanGrack said, “Sunlight is the best disinfectant and transparency is the hallmark of good governance. Oregon AG Dan Rayfield is pursuing litigation that stands to make out-of-state law firms wealthy, at the expense of local residents who seek to trade digital assets. So, why is Governor Kotek refusing to provide basic information about the case, including why the state suddenly flipped its views on crypto?”

“Oregonians deserve to know why their government is keeping them in the dark – and why they’re pursuing a case that would deprive Oregonians (and only Oregonians) from trading crypto,” VanGrack added.

In a statement to KOIN 6, Oregon Attorney General Rayfield’s Office said, “The Attorney General has an obligation to enforce the law. For years, Coinbase has violated Oregon law through its practice of selling high-risk, unregistered crypto assets to Oregonians. Now, Coinbase is further burdening Oregon’s taxpayers by submitting a stream of extremely broad public records requests to multiple state agencies – and refusing to pay for the service, as the law requires.”

Rayfield’s office continued, “Coinbase’s most recent lawsuit is a distraction from addressing the allegations of the case head-on, and yet another attempt to have Oregonians foot the bill for Coinbase’s own illegal profiteering. This is a malicious and common tactic — used by the likes of opioid manufacturers and big tobacco — to burden states and deter them from enforcing laws. Coinbase’s tactics are disappointing but unsurprising for a company that operates outside the law. AG Rayfield is committed to upholding Oregon’s laws and values, and expects more from companies purporting to service Oregonians.”

A spokesperson for Governor Kotek told KOIN 6 News the governor’s office does not comment on pending litigation.