Oregon AG names XRP a security in lawsuit, expanding beyond SEC's claims and reigniting the crypto classification debate.

Just days before Coinbase launched CFTC-regulated XRP futures on its U.S. derivatives platform, the Oregon Attorney General filed a lawsuit against the company, claiming that 31 cryptocurrencies sold on Coinbase — including XRP, UNI, LINK, AAVE, and MKR — are unregistered securities.

The Oregon Attorney General has named XRP a security in a lawsuit against Coinbase, expanding on the types of digital assets covered by the U.S. Securities and Exchange Commission (SEC) in its case against the exchange.

Oregon AG Names XRP a Security in Lawsuit Against Coinbase

The lawsuit, filed on Friday in an Oregon state court, names 31 cryptocurrencies as unregistered securities sold by Coinbase and its subsidiary, Coinbase Prime.

The lawsuit, which is part of a broader investigation into the exchange’s activities, follows a similar action by the SEC, which sued Coinbase for allegedly selling unregistered securities and operating an unregistered exchange. The SEC’s complaint listed 13 tokens, while the Oregon case expands that number to 31, which it calls “crypto securities.”

The lawsuit claims that the tokens were offered and sold as investment contracts through Coinbase and Coinbase Prime, and that the exchange failed to register its securities offerings or its exchange with the state’s banking regulator.

The lawsuit also alleges that Coinbase made false and misleading statements about the tokens to investors.

Oregon lawsuit names 31 crypto assets as ‘unregistered securities’ sold by Coinbase in a multi-year scheme to defraud investors. The lawsuit, filed Friday by Oregon Attorney General (AG) Bronson in the State of Oregon Circuit Court, follows a similar action by the SEC, which sued Coinbase for allegedly...

The lawsuit is pending before Judge Charles R. Doty.

Coinbase Delisted XRP in 2020

Coinbase delisted XRP from its U.S. exchange shortly after the SEC sued Ripple in December 2020. The exchange did not relist the token until after the July 2023 summary judgment from Judge Torres, who stated that XRP itself is not a security.

Earlier this week, Coinbase launched XRP futures trading for U.S. customers through its CFTC-regulated derivatives platform.

The lawsuit comes at a pivotal time for Coinbase, which is facing increasing legal scrutiny and conflicting state-federal rulings over the status of cryptocurrencies.

The lawsuit is sure to spark fresh debate over the legal classification of digital assets in the U.S., as regulators and state officials continue to take different positions on what defines a security in the crypto space.

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