Oregon Sues Coinbase Over Securities Violations with 31 Tokens, Including XRP, ADA, SOL!

Coinbase is once again in legal trouble. But this time, it’s not the SEC coming after the crypto giant. The Oregon Attorney General has filed a lawsuit against the exchange, accusing it of offering and selling unregistered securities to users in the state.

This fresh legal challenge could have far-reaching consequences, so let’s break it down.

Oregon Targets 31 Tokens in New Lawsuit

The lawsuit claims that Coinbase offered at least 31 tokens that should have been registered as securities. Some of the biggest names in crypto are on that list, including XRP, ADA, LINK, AAVE, MKR, UNI, SOL, MATIC, and others.

Interestingly, Oregon’s complaint goes beyond the SEC’s earlier lawsuit, which listed only 18 tokens. This move could raise the stakes for Coinbase and possibly set a broader legal precedent.

Coinbase Misled Oregonians?!

Oregon’s Attorney General, Dan Rayfield, said Coinbase earned the trust of users in the state and then offered them risky investments that hadn’t been properly vetted.

“Coinbase gained trust from people in Oregon and then offered risky investments that weren’t fully checked. Because of this, people lost money, and we think Coinbase should be held responsible.”

The lawsuit alleges that while Coinbase collected millions of dollars in fees, many Oregon users ended up losing money.

Coinbase Pushes Back

Paul Grewal, Coinbase’s Chief Legal Officer, fired back on social media platform X. He criticized the Attorney General for filing the case on behalf of more than 500,000 Oregonians without asking for their consent.

He also warned that the lawsuit could impact more than just Coinbase, and could hurt the entire industry.

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XRP in the Crosshairs Again?

One of the key tokens named in the lawsuit is XRP. Oregon’s Attorney General argues that XRP should be considered a security and therefore be subject to specific rules and regulations.

This comes not long after Ripple’s legal battle with the SEC, where a judge ruled that XRP is not a security in certain circumstances. Now, Oregon is reopening that debate, raising new questions about how XRP — and other tokens — should be classified under state law.

While Oregon’s lawsuit is based on state-level securities laws, the outcome could have a nationwide effect. If Oregon succeeds, other states might follow its lead and bring their own cases against crypto companies.