XRP Labeled Unregistered Security in Coinbase Lawsuit Despite 2023 Court Ruling

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  • XRP has been named an unregistered security in a new lawsuit filed against Coinbase by the Oregon Attorney General.
  • This move contradicts a 2023 federal ruling that declared XRP not a security when sold to retail investors.


In a development that reignites legal tensions in the crypto world, Ripple-affiliated token XRP has been labeled an “unregistered security” in a new lawsuit filed against Coinbase by Oregon Attorney General Dan Rayfield. The suit, which also names several other digital assets, marks another flashpoint in the ongoing battle over how crypto tokens should be classified under U.S. securities law.

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The lawsuit, revealed earlier this week, is being criticized by Coinbase, which issued a sharp response. The exchange called the lawsuit “meritless,” accusing Rayfield of reviving the discredited approach of regulation by enforcement. Coinbase contends that the AG is ignoring judicial precedent and failing to adapt to a crypto landscape that has already started achieving regulatory clarity.

That clarity, Coinbase argues, includes XRP. In 2023, a federal judge ruled that XRP was not a security when sold to retail investors on public exchanges, a landmark decision in the broader SEC vs. Ripple legal saga. The U.S. Securities and Exchange Commission (SEC) eventually dropped its appeal in early 2024, following the departure of then-Chair Gary Gensler.

The latest move by Oregon’s AG, however, has once again placed XRP in the regulatory spotlight, drawing backlash from industry advocates. Justin Slaughter, Vice President of Regulatory Affairs at Paradigm, noted that XRP’s inclusion in the lawsuit directly contradicts the existing court ruling, raising questions about consistency in enforcement.

This lawsuit could have wider implications for Coinbase and the crypto sector at large. It underscores the persistent regulatory uncertainty still hovering over the digital asset market, despite recent legal victories for crypto firms.

As the dust settles, market participants are left grappling with a critical question: Can U.S. regulators and lawmakers finally establish a unified framework for crypto, or will patchwork enforcement continue to cloud innovation?

For now, one thing is clear—XRP’s legal journey isn’t over yet. And neither is the industry’s fight for clarity.