Oregon’s Lawsuit Against Coinbase: Unpacking the Challenge Over XRP and Other Unregistered Tokens

As Oregon escalates its legal actions, Coinbase faces scrutiny regarding the trading of numerous unregistered tokens, sparking debate on state versus federal regulation in the crypto sector.

• Oregon intensifies legal pressure on Coinbase over unregistered securities, citing 31 tokens, including XRP.

• As federal regulators step back, states like Oregon ramp up crypto enforcement actions.

Oregon regulators have ramped up legal pressure on Coinbase, alleging the platform enabled illegal trading of unregistered securities.

In a recent complaint, state officials claim the exchange’s retail and Prime services facilitated transactions in at least 31 tokens deemed unregistered under Oregon law.

Oregon takes a legal jab at Coinbase

The case’s sweeping scope caught the attention of industry insiders, with Paradigm’s Justin Slaughter, former SEC and CFTC adviser, emphasizing its regulatory significance.

He said,

“The Oregon AG suit … actually covers many more tokens than the SEC complaint did, with 31 tokens claimed to be unregistered securities, including UNI, AAVE, FLOW, LINK, MKR, and even XRP. It’s a true kitchen sink lawsuit.”

For context, Oregon Attorney General Dan Rayield filed a lawsuit against Coinbase, accusing the publicly traded U.S. exchange of breaching Oregon’s securities laws.

In response to which, the Oregon Department of Justice announced the legal action on the 18th of April, framing it as a response to what it sees as a regulatory void left by federal agencies during the Trump administration.

The department said,

“States must fill the enforcement vacuum being left by federal regulators who are abandoning these cases under the Trump administration.”

Needless to say, Coinbase’s Chief Legal Officer, Paul Grewal, didn’t hold back his criticism of Oregon’s legal challenge, expressing clear frustration in a post on 22nd April.

The Inclusion of XRP

That being said, the lawsuit notably echoes past regulatory battles, naming Ripple [XRP] among the tokens allegedly sold as unregistered securities, despite Ripple’s recent partial legal reprieve from the SEC.

Ripple’s high-profile clash with the SEC, dating back to 2020, ended in March with the agency dropping its case, yet the lack of a definitive ruling left the industry in limbo.

Just as XRP’s legal clarity appeared to be gaining traction and Coinbase cautiously expanded by listing XRP futures on its derivatives platform, a surprising twist emerged.

The Alabama Securities Commission quietly withdrew its lawsuit against the exchange, pausing what had been a growing wave of state-led enforcement.

That case had accused Coinbase’s staking services of constituting unregistered securities offerings, similar in tone to Oregon’s current allegations.

Together, these moves highlight a fragmented regulatory landscape, where one state backs off while another escalates, leaving crypto firms navigating a complex, often contradictory patchwork of legal risks.

Conclusion

As the regulatory landscape evolves, Coinbase’s ongoing battle in Oregon will likely set precedents for future crypto regulations nationwide. The outcome may influence how states approach enforcement in this rapidly changing landscape, leaving industry stakeholders eagerly anticipating developments.