- Oregon is suing Coinbase for allegedly selling 31 unregistered crypto tokens, including XRP, ADA, and LINK, violating state securities laws.
- The lawsuit could have nationwide implications as it challenges the classification of major cryptocurrencies as securities.
In a legal bombshell that could rattle the crypto industry, the state of Oregon has filed a lawsuit against Coinbase, the largest U.S.-based cryptocurrency exchange, accusing it of selling unregistered securities. The suit targets 31 popular digital assets, including big names like XRP, ADA, LINK, and UNI—declaring them illegal securities under state law.
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Oregon’s Attorney General, Dan Rayfield, alleges that Coinbase misled Oregonians by promoting and selling risky crypto investments without proper registration. “Coinbase gained trust from people in Oregon and then offered risky investments that weren’t fully checked,” said Rayfield. “Because of this, people lost money, and we think Coinbase should be held responsible.”
The lawsuit claims Coinbase made millions in fees while users across the state suffered losses from these unregistered offerings. The list of 31 tokens flagged by Oregon surpasses even the U.S. Securities and Exchange Commission’s (SEC) own tally of 18 tokens named in its ongoing case against the exchange.
Among the most high-profile tokens named is XRP—already in the legal hot seat after years of scrutiny from federal regulators. If Oregon succeeds in labeling XRP a security, the ripple effects (no pun intended) could influence how crypto is regulated at the national level.
Coinbase, meanwhile, is not backing down. Chief Legal Officer Paul Grewal slammed the lawsuit on social media platform X, arguing that the Attorney General is acting on behalf of over 500,000 users without their knowledge or consent. Grewal warned the legal move could stifle innovation and harm the broader crypto ecosystem.
The case underscores a growing trend of individual states stepping up to regulate crypto in the absence of clear federal guidance. While Oregon’s lawsuit only applies within its borders, it could set a precedent for other states to follow.
As the courtroom battle unfolds, all eyes are once again on XRP—and the crypto world waits to see just how far the definition of a “security” can stretch in the age of digital finance.