XRP Faces Fresh Security Allegations in Oregon Coinbase Lawsuit

Ripple-affiliated cryptocurrency XRP has once again been labeled an unregistered security, this time in a lawsuit filed against Coinbase by Oregon Attorney General Dan Rayfield. The case, which includes multiple other tokens, reignites concerns over the regulatory treatment of digital assets in the U.S., despite prior legal clarity on XRP.

Paradigm’s Vice President of Regulatory Affairs, Justin Slaughter, highlighted the development, noting its potential implications for the broader crypto market. In response, Coinbase issued a strong rebuttal, calling the lawsuit “meritless” and accusing the Oregon AG of pushing a “regulation by enforcement” agenda. The exchange argued that the action ignores established legal precedent and fails to acknowledge the evolving nature of crypto regulation.

The controversy comes despite a significant ruling in 2023, when a federal judge concluded that XRP was not a security when sold to retail investors on secondary markets. That decision marked a turning point for Ripple, and the SEC later dropped its appeal following the departure of former Chair Gary Gensler.

The renewed scrutiny of XRP comes at a time when the token is gaining traction, with regulated XRP futures recently launching on Coinbase. The platform’s move is seen as a major step forward in legitimizing XRP as a tradable asset under U.S. law.

While the legal back-and-forth continues, the crypto community remains divided over the government’s role in shaping industry rules. For XRP holders and crypto investors at large, this lawsuit may signal yet another chapter in the ongoing battle between innovation and regulation.