- Oregon’s lawsuit against Coinbase expands beyond the SEC’s previous claims, pulling more crypto assets into legal uncertainty, including XRP, SOL, and LINK
- Coinbase notified over 500,000 Oregon users, stating the lawsuit was filed in their name without consent, raising concerns over state-level regulatory reach
- Ripple’s XRP is once again labeled a security, reigniting debates on its classification after the SEC dropped its case, leaving no legal precedent
More details are being revealed regarding the lawsuit Coinbase has been hit with by Oregon’s Department of Justice. Last week, we reported how the State’s DOJ, led by Attorney General Dan Rayfield, decided to fill the alleged “regulatory vacuum” by federal regulators—suing Coinbase for failure to comply with state financial laws.
Today, new pages of the lawsuit have been uncovered, revealing that many other crypto projects and firms may be dragged along with Coinbase in the legal action. In fact, Oregon’s case covers even more cryptocurrency tokens than the original SEC lawsuit.
This means that the repercussions of this case could affect an even larger chunk of the industry. Notoriously, Ripple’s altcoin XRP was strictly mentioned as a security in the filing, re-opening the debate of whether the crypto should be classified as a security or not.
Several other tokens were also mentioned: AAVE, AVAX, AXS, CHZ, LINK, MATIC, SOL, and UNI.
Coinbase CLO Notifies Oregon Clients
On Twitter, Coinbase’s Chief Legal Officer, Paul Grewal, called out Oregon Attorney General Dan Rayfield, criticizing the lawsuit’s sweeping claims against various crypto assets. Grewal emphasized that, regardless of the project—XRP, SOL, or others—the Attorney General is accusing them all of violating securities laws and misleading investors.
He also revealed that Coinbase had notified over 500,000 Oregon users about the case, warning them that the lawsuit was filed in their name without their consent. According to Grewal, this legal action is not just targeting Coinbase but the broader crypto industry, raising concerns about regulatory overreach.
What Does This Mean for XRP?
While Oregon’s lawsuit is limited to state-level jurisdiction, it’s decision could have broader impact outside of the State’s borders.
Ripple, which just recently saw itself under less regulatory pressure from the Securities and Exchange Commission’s decision to drop the lawsuit against the firm, could find itself under renewed pressure as Oregon’s Attorney General goes after XRP and its regulatory status.
As we still are on the very early upbringings of the case, and there is still a lot of information to be uncovered—the overall perspective is that Oregon doesn’t have a lot of ground to question Federal regulators.
What doesn’t help is the fact that even under the new administration, the SEC has still not decided whether cryptocurrencies like XRP are securities or not. Instead, the commission just dropped the cases involving these firms, which leaves no legal precedent or clarity on how similar assets will be regulated moving forward.
While the “Crypto Task Force” continues to work on showing up with a clearer regulatory framework to present to Congress, progress remains slow, leaving the industry in a state of uncertainty.
Looking for a solid trading bonus? WEEX is offering a 20% deposit reward, with bonuses up to 28000 USDT. Trade 1M USDT to get 160 bonus—perfect for traders looking to maximize their rewards!
