Coinbase Challenges Oregon’s Crypto Asset Reclassification in Legal Battle

Coinbase has taken legal action against Oregon state officials, including Governor Tina Kotek, following the abrupt reclassification of 31 cryptocurrency assets as securities. The lawsuit, filed in Marion County, seeks transparency and public records, alleging that the policy change was implemented without public consultation or legislative discussion. Paul Grewal, Coinbase's Chief Legal Officer, criticized the decision as being made 'behind closed doors,' highlighting a lack of due process. This development underscores ongoing tensions between crypto exchanges and regulatory bodies over asset classification and regulatory oversight.

Coinbase Sues Oregon State Over Crypto Asset Reclassification

Coinbase has filed a lawsuit against Oregon Governor Tina Kotek and state officials following a sudden reclassification of 31 crypto assets as securities. The legal action, lodged in Marion County, demands transparency through public records, alleging the policy shift was enacted without public input or legislative debate.

Chief Legal Officer Paul Grewal accused officials of making the decision behind closed doors, contradicting prior guidance. The reclassification has forced Coinbase to suspend multiple services in Oregon, impacting hundreds of thousands of users. The dispute stems from an April enforcement action by Oregon Attorney General Dan Rayfield, which targeted Coinbase for offering unregistered securities.

SharpLink Expands Ethereum Holdings, Stock Surges 17% Amid Institutional Crypto Adoption Wave

SharpLink Gaming has aggressively expanded its ethereum treasury with a 21,487 ETH purchase through Coinbase Prime, triggering a 17% stock price rally. The NASDAQ-listed company now holds 237,121 ETH worth approximately $90 million, mirroring MicroStrategy's Bitcoin accumulation strategy. This follows their initial direct purchase from the Ethereum Foundation last week.

The move comes alongside growing institutional interest in Ethereum. BlackRock's iShares Ethereum ETF (ETHA) reported $761 million in weekly inflows, including a single-day $137 million purchase of 45,000 ETH. The fund now manages over 2 million ETH with $6.15 billion in assets under management.

GameSquare joined the trend this week, announcing plans for a $100 million Ethereum treasury. Market activity suggests corporations are increasingly viewing Ethereum as a strategic reserve asset, with trading volumes for SharpLink hitting $53 million amid the buying spree.