TL;DR
- Oregon Attorney General Dan Rayfield sued Coinbase for promoting and selling unregistered cryptocurrencies.
- The lawsuit states that Coinbase favored practices like “pump-and-dump” schemes, affecting consumers with risky investments and without proper protection.
- Rayfield criticizes the SEC’s withdrawal of its lawsuit against Coinbase and emphasizes the need for state governments to take a more active role in regulating the crypto industry.
Oregon Attorney General Dan Rayfield has filed a lawsuit against Coinbase, one of the most important cryptocurrency exchanges in the United States.
The lawsuit claims that the platform promoted and facilitated the sale of unregistered cryptocurrencies, violating Oregon’s securities laws. According to the attorney general, Coinbase helped market high-risk digital assets without providing proper investor protection. This situation has led to losses for state consumers, who have been affected by risky investments in a market that is hard to understand and full of uncertainties.
Rayfield emphasizes that by selling unregistered cryptocurrencies, Coinbase has favored practices such as “pump-and-dump” schemes and other forms of fraud. These mechanisms have allowed some actors to make large profits while investors lose money.
Coinbase Avoided the SEC and Got a New Harasser
One example highlighted in the lawsuit is the case of ICP (Internet Computer Protocol), a cryptocurrency that, after being launched on the Coinbase platform, saw a dramatic drop in its value. This sudden collapse led to the loss of billions of dollars for some investors.
Oregon’s attorney general has stated that the responsibility of overseeing these assets should fall on state governments due to the SEC’s withdrawal from a similar lawsuit against Coinbase. According to Rayfield, federal regulators under the Donald Trump administration abandoned crucial investigations into the crypto industry, leaving a gap in law enforcement. As a result, he believes it is essential for states to take a more active role in protecting local investors.
The lawsuit challenges the shift that was taking place in the United States regarding the regulation of the crypto industry. It remains to be seen how events will evolve and what the outcome and impact on the industry will be.
