Oregon Sues Coinbase Over XRP Listing As Unregistered Security
1min read XRP, the cryptocurrency, has once again found itself in the midst of legal turmoil. Just days after Coinbase listed XRP futures on its platform, the state of Oregon filed a lawsuit against the exchange. On April 18, Attorney General Dan Rayfield accused Coinbase of offering XRP, along with 30 other tokens, as unregistered securities. This move by Oregon's top legal enforcer has added another layer of complexity to the already contentious debate surrounding the classification of cryptocurrencies.
The Oregon Department of Justice was clear in its intentions, stating that the lawsuit was part of a broader effort to address the "enforcement vacuum" left by federal regulators under the previous administration. This vacuum has not only created a lack of enforcement but also a lack of clarity in the regulatory landscape. The complaint filed by Rayfield lists a variety of assets, including Aave, Avalanche, Uniswap, Near Protocol, and even wLUNA, as securities. However, the complaint does not provide a clear explanation for why certain wrapped assets were included while others were not. This lack of clarity has led to confusion, as noted by Yarden Noy, a partner at DLT Law. Even if XRP is ruled a security in this case, the decision would not be binding in other states or even in other cases within Oregon.
This legal action against XRP is not the first time the cryptocurrency has faced such challenges. XRP holders are familiar with the years-long legal battle between Ripple Labs and the U.S. Securities and Exchange Commission. That lawsuit, which accused Ripple of conducting a $1.3 billion unregistered securities offering, concluded with the SEC withdrawing its case in late March, leaving more questions than answers. Now, Oregon's lawsuit seems to ignore the Ripple ruling entirely, according to Justin Slaughter of Paradigm. This case appears to be a "kitchen sink lawsuit," throwing every possible argument and token at the wall to see what sticks.
The timing of this lawsuit is particularly noteworthy. Just as XRP was gaining some institutional traction, such as Coinbase launching XRP futures on April 21, it has been dragged back into courtroom uncertainty. This legal action has dealt yet another blow to the confidence of XRP traders. While this suit is unlikely to set a sweeping precedent, it adds to the ongoing debate about the classification of cryptocurrencies, a debate that shows no signs of ending anytime soon.
