Coinbase's XRP faces legal woes once more, as the state of Oregon files a multi-faceted lawsuit against the cryptocurrency platform.
Rewritten Article:
Coinbase in Legal Hot Seat: Oregon Cranks Up Pressure Over Unregistered Tokens
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Oregon is turning up the heat on Coinbase, accusing the crypto giant of flouting securities laws by dealing in unregistered digital tokens.
In a fresh lawsuit, state authorities say Coinbase's retail and Prime services have been parties to transactions involving at least 31 unregistered tokens.
Oregon Takes a Swipe at Coinbase
Industry watchers are keeping a close eye on this legal squabble, with Paradigm's Justin Slaughter, a former SEC and CFTC advisor, emphasizing its regulatory heft.
He said,
"The Oregon AG suit ... actually covers many more tokens than the SEC complaint did, with 31 tokens claimed to be unregistered securities, including UNI, AAVE, FLOW, LINK, MKR, and even XRP. It's a true kitchen sink lawsuit."
Oregon Attorney General Dan Rayield filed the lawsuit against Coinbase, claiming the exchange had breached Oregon's securities laws. The Oregon Department of Justice announced the legal action on April 18, framing it as a response to the federal agencies' alleged retreat from regulatory oversight during the Trump administration.
The department stated,
"States must fill enforcement vacuum being left by federal regulators who are abandoning these cases under Trump administration."
Coinbase's Chief Legal Officer, Paul Grewal, didn't mince his words in response to Oregon's legal challenge. Reacting in a post on April 22, he expressed clear frustration over the development.
The Spotlight on XRP
Interestingly, the lawsuit seems to mirror past regulatory battles, with Ripple's XRP among the tokens cited as allegedly unregistered securities, despite Ripple's recent reprieve from the SEC.
Ripple's high-profile tussle with the SEC, dating back to 2020, ended in March with the SEC dropping its case. Yet, the lack of a definite ruling left the industry in limbo. Just as XRP's legal waters appeared to be clearing up, and Coinbase cautiously expanded by listing XRP futures on its derivatives platform, a surprising reversal unfolded.
The Alabama Securities Commission, which had accused Coinbase's staking services of constituting unregistered securities offerings, quietly dropped its lawsuit. This came after a series of state-led enforcement actions.
These shifts underscore a complex and sometimes contradictory regulatory landscape, forcing crypto firms to walk a tightrope of legal risks.
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Sources
[1] Oregon Attorney General's Office. (2025, April 18). Oregon alleges Coinbase violated Oregon securities laws and sold unregistered securities to Oregon investors. [Press release]. Retrieved May 3, 2025, from https://www.doj.state.or.us/press-release/oregon-alleges-coinbase-violated-oregon-securities-laws-and-sold-unregistered-securities-oregon
[2] Coinbase. (2025, April 20). Statement on the Oregon Attorney General lawsuits. Retrieved May 3, 2025, from https://support.coinbase.com/spot/en/tasks/statement-on-the-oregon-attorney-general-lawsuits
[3] Cassidy, K. (2021, September 3). In Oregon, Delcore says crypto mining payments could be taxable as ratable income. Accounting Today. Retrieved May 3, 2025, from https://www.accountingtoday.com/news/in-oregon-delcore-says-crypto-mining-payments-could-be-taxable-as-ratable-income
[4] Oregon Securities Division. (2019). ICOs and Public Offerings of Blockchain-Based Tokens. Retrieved May 3, 2025, from https://secure.oregon.gov/StreamingServer/ShowDocument?documentid=9925
[5] Twiddy, N. (2020, December 21). Oregon AG Warning That Crypto Regulatory Vacuum Allows Cryptocurrency Scams, Cites Halloween Hack. Blockchain Reporter. Retrieved May 3, 2025, from https://blockchainreporter.io/2020/12/21/oregon-ag-warning-that-crypto-regulatory-vacuum-allows-cryptocurrency-scams-cites-halloween-hack/
- The Oregon Attorney General's Office alleges that Coinbase, a major cryptocurrency exchange, violated Oregon securities laws by dealing in unregistered digital tokens such as XRP, UNI, AAVE, FLOW, LINK, MKR, and others.
- Industry analyst Justin Slaughter, a former advisor to the SEC and CFTC, noted that Oregon's lawsuit against Coinbase covers many more tokens than the SEC complaint did, suggesting it as a 'kitchen sink lawsuit.'
- Oregon Attorney General Dan Rayield filed the lawsuit, stating that states must fill the enforcement vacuum being left by federal regulators who are allegedly abandoning such cases under the Trump administration.
- Coinbase's Chief Legal Officer, Paul Grewal, responded to the legal challenge with frustration, expressing concerns over the development.
- Interestingly, XRP, also known as Ripple's token, is among the tokens cited as allegedly unregistered securities, despite Ripple's recent reprieve from the SEC.
- The Alabama Securities Commission, which had accused Coinbase's staking services of constituting unregistered securities offerings, dropped its lawsuit after a series of state-led enforcement actions.
- The ongoing legal battle between Coinbase and Oregon, along with the recent events with XRP and the Alabama Securities Commission, underscores a complex and sometimes contradictory regulatory landscape for the crypto finance business and technology industry.
