XRP (XRP-USD) continues to face challenges. Following Coinbase’s (COIN) recent listing of XRP futures, Oregon’s Attorney General, Dan Rayfield, has initiated a lawsuit against the exchange. On April 18, he accused Coinbase of trading XRP, along with 30 other tokens, as unregistered securities.
OREGON TAKES ACTION AGAINST COINBASE REGARDING XRP
The Oregon Department of Justice has launched an assertive campaign against Coinbase. In their announcement, they expressed that this lawsuit is part of a broader initiative to address the regulatory void left by federal authorities during the Trump presidency. This regulatory gap has raised significant confusion in the marketplace.
Rayfield’s complaint identifies numerous tokens—including Aave (AAVE-USD), Avalanche (AVAX-USD), Uniswap (UNI-USD), Near Protocol (NEAR-USD), and wLUNA—as securities. However, the rationale behind the selection of certain wrapped assets over others remains unclear. As noted by Yarden Noy, a partner at DLT Law, “This could lead to even more confusion.” Even if XRP were to be classified as a security in this case, it would not set a legal precedent for other states, nor would it affect other legal cases in Oregon.
LEGAL TROUBLES FOR XRP RESURFACE
Those holding XRP have experienced similar frustrations in the past. The token was at the center of a prolonged legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). That lawsuit alleged that Ripple conducted a $1.3 billion illegal securities offering and wrapped up with the SEC withdrawing in late March, but left many uncertainties in its wake.
Now, Oregon is launching another legal challenge while seemingly disregarding the resolution of the Ripple case. According to Justin Slaughter from Paradigm, this lawsuit resembles a “kitchen sink lawsuit,” where every possible argument and token is thrown into the mix to test its validity.
The timing of this legal development is peculiar. XRP was beginning to gain traction among institutional investors—illustrated by Coinbase’s launch of XRP futures on April 21—before being dragged back into legal complications. This has led to another blow to the confidence of XRP traders. As Noy remarked, a major precedent should not be anticipated from this case. However, it does contribute further to a complicated and ongoing discussion surrounding cryptocurrency regulation.
As of the latest update, XRP is valued at $2.15.
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