Coinbase Faces Oregon Lawsuit Over Unregistered Securities, XRP Mention Missing

Coinbase is under fresh legal pressure as Oregon Attorney General Dan Rayfield files a complaint accusing the exchange of selling unregistered securities to state residents. The lawsuit claims Coinbase failed to protect consumers by neglecting to screen risky crypto investments. This state-level action follows the U.S. SEC's decision to halt its federal case against Coinbase earlier this year, marking a broader shift in federal crypto enforcement.

Paul Grewal, Coinbase’s Chief Legal Officer, responded on X, calling the Oregon suit a "copycat" of the SEC’s previous complaint. He highlighted that the complaint omits key legal precedents, including Judge Torres’ 2023 ruling that XRP is "not necessarily a security," which had major implications for the crypto industry. Grewal also criticized the lawsuit for labeling former SEC Chair Gary Gensler a “crypto lobbyist” and questioned the motivations behind reviving a regulation-by-enforcement approach.

The lawsuit's timing adds complexity as XRP struggles to break free from a stagnant price range, hovering around $2.08 with low trading volume. Despite bearish pressure, XRP has gained traction in Asia, with HashKey Capital launching an XRP tracker fund targeting institutional investors. Analysts speculate a potential breakout toward $2.25 or even a double-digit rally by July if historical patterns repeat.

Coinbase, meanwhile, maintains that it is right on the law and facts, expressing readiness to fight what it calls a misguided case. As crypto regulation remains uncertain, the outcome of this legal battle could set new precedents, particularly as more states step in where federal enforcement has receded. Investors and industry watchers are closely monitoring the case for its potential ripple effects on U.S. crypto regulation.