Oregon AG Files Lawsuit Against Coinbase, Labels XRP as Unregistered Security

Oregon Attorney General Dan Rayfield has filed a lawsuit against Coinbase, alleging that the exchange offered 31 digital assets—including XRP—as unregistered securities in violation of Oregon state law. This legal action, initiated on April 18, 2025, aims to address what the Oregon Department of Justice describes as a regulatory gap left by federal agencies under the previous administration.

The lawsuit accuses Coinbase of facilitating the sale of these assets through its main platform and Prime service, thereby promoting high-risk investments susceptible to fraud and market manipulation. The Oregon Department of Justice highlights the vulnerability of such unregistered securities to "pump-and-dump" schemes, which can result in significant financial losses for investors.

Notably, the inclusion of XRP in this lawsuit is particularly significant given recent legal developments. In 2023, a federal judge ruled that XRP is not a security when sold to retail investors on public exchanges. This decision was further supported when the U.S. Securities and Exchange Commission (SEC) dropped its case against Ripple Labs earlier this year.

In response to the lawsuit, Coinbase's Chief Legal Officer, Paul Grewal, criticized the Oregon Attorney General's actions, suggesting that the state is attempting to revive previously dismissed federal claims. Legal experts, including XRP attorney Bill Morgan, have labeled the lawsuit as "dystopian nonsense," pointing out that it contradicts established legal precedents and lacks merit.

This development underscores the ongoing complexities and uncertainties in the regulatory landscape for digital assets, highlighting the need for clear and consistent guidelines to navigate the evolving intersection of cryptocurrency and securities law.