PANews reported on July 4 that according to Decrypt, the Oregon Attorney General asked the federal court to dismiss Coinbase's motion to transfer the securities lawsuit to the federal court, insisting that the case should be heard in the state court. The lawsuit accuses Coinbase of promoting unregistered crypto securities to state residents and profiting from millions of dollars in fees. The core dispute in the case is that the "Pratt test" adopted by Oregon is broader than the federal "Howey test", and even if crypto assets do not meet the federal definition of securities, they may still be identified as state-level securities. Legal experts pointed out that if the state court's ruling is upheld, it may trigger a chain of enforcement by states against crypto companies based on local securities laws.

It is worth noting that although the Trump administration withdrew the SEC's lawsuit against Coinbase in February this year, states are strengthening their regulatory powers through local securities laws. Coinbase called the lawsuit a "regulatory enclosure movement" and warned that fragmented state-level regulation would exacerbate industry chaos.