Oregon AG Sues Coinbase Over 31 Unregistered Crypto Securities

In a recent development, the Oregon Attorney General (AG) has filed a lawsuit against Coinbase, alleging that Ripple [XRP], Solana [SOL], and 29 other tokens traded on the platform are unregistered ‘crypto securities.’ This move has sparked controversy, particularly because it contradicts a previous ruling by Judge Analisa Torres, who determined that only the sale of XRP to institutional investors falls within the definition of a security.

Justin Slaughter, vice president of regulatory affairs at Paradigm, highlighted that the Oregon AG's lawsuit includes a broader range of tokens than the dismissed SEC case against Coinbase. The lawsuit covers 31 tokens, including UNI, AAVE, FLOW, LINK, MKR, and XRP, all of which are claimed to be unregistered securities.

Coinbase's legal chief, Paul Grewal, dismissed the complaint, pointing out that the Oregon AG failed to acknowledge Judge Torres’ decision on XRP. This oversight is significant because it could impact the ongoing legal battle between Ripple and the SEC, which recently agreed to a 60-day pause for potential settlement.

Despite the regulatory uncertainties, XRP markets have seen a spike in address activity, increasing from 27,000 to 40,000 users. However, this surge in network traction did not translate into significant price action. The short-term price movement of XRP has been sluggish, with its Open Interest (OI) rates fluctuating between $3 billion and $4 billion since February, indicating a cooling off of speculative interest in the derivatives market.

On the price chart, XRP remains within its downtrend. A bullish breakout to $2.48 would require the altcoin to surpass $2.4 and break the downtrend, a scenario that has not yet materialized. This regulatory uncertainty and lack of price momentum highlight the challenges faced by XRP in the current market environment.