- XRP has been labeled an unregistered security in a new lawsuit against Coinbase, reigniting legal tensions despite previous court rulings clarifying its status.
- Coinbase dismissed the lawsuit as baseless, accusing regulators of using outdated enforcement tactics.
In a surprising twist to an already contentious legal landscape, the XRP cryptocurrency has been named as an unregistered security in a new lawsuit filed against Coinbase by Oregon Attorney General Dan Rayfield. This latest action once again puts Ripple’s digital asset at the center of a long-running regulatory debate—even after a federal judge ruled in 2023 that XRP was not a security when sold to retail investors on public exchanges.
The lawsuit, which also targets other tokens, has been sharply criticized by Coinbase. The exchange accused Rayfield of reviving “regulation by enforcement”—a term often used to describe what critics see as the SEC’s heavy-handed approach under former Chair Gary Gensler. In a pointed statement, Coinbase dismissed the complaint as “meritless” and claimed it ignored the current regulatory reality surrounding XRP.
Also read: XRP Labeled Unregistered Security in Coinbase Lawsuit Despite 2023 Court Ruling
Justin Slaughter, VP of regulatory affairs at Paradigm, highlighted the lawsuit’s reference to XRP as particularly noteworthy given that the token had appeared to clear major legal hurdles. The SEC had even dropped its appeal on the XRP ruling earlier this year, following Gensler’s departure.
So why is XRP being dragged back into court?
Legal experts suggest the case may not be about XRP specifically, but part of a broader push by state-level officials to assert authority in crypto regulation. Still, the inclusion of XRP—widely viewed as one of the few tokens with regulatory clarity—raises fresh concerns about inconsistent legal interpretations in the U.S.
The lawsuit also arrives at a pivotal moment. is leading in ETF filings alongside Solana and has recently seen the launch of regulated futures on Coinbase, signaling increased institutional interest.
While the market hasn’t reacted dramatically yet, the case could have ripple effects—pun intended—for how digital assets are classified and traded in the U.S. If courts allow the lawsuit to proceed, crypto firms may once again find themselves navigating uncertain terrain.
For XRP holders and the broader crypto community, this lawsuit is a reminder that even a “win” in court doesn’t always mean the battle is over.