Oregon sues Coinbase over 31 crypto securities including XRP, sparking renewed regulatory debate in the U.S. - IcoHolder.

In a move that has deepened the legal uncertainty surrounding cryptocurrency regulations in the United States, the Oregon Attorney General has filed a lawsuit against Coinbase, accusing the exchange of selling 31 unregistered securities. Among the cryptocurrencies named in the lawsuit are prominent tokens such as XRP, UNI, LINK, AAVE, and MKR, marking a significant expansion beyond the 13 tokens initially targeted by the U.S. Securities and Exchange Commission (SEC).

The lawsuit argues that these tokens were sold as investment contracts through Coinbase’s platforms, including Coinbase Prime, thereby classifying them as “crypto securities.” One of the most notable aspects of the case is the inclusion of XRP, a cryptocurrency that has been at the center of legal battles regarding its classification as a security. Coinbase had initially delisted XRP following the SEC’s lawsuit against Ripple in December 2020. However, after a landmark ruling in July 2023 by Judge Torres, which determined that XRP itself is not a security, Coinbase relisted the token. The Oregon complaint does not appear to consider this recent court ruling.

The timing of this lawsuit is particularly significant, as it arrives just days before Coinbase is set to launch XRP futures trading on its CFTC-regulated derivatives platform. This move suggests renewed confidence in XRP’s legal standing and is seen as a step toward normalizing the token’s position within the U.S. regulatory environment. The lawsuit, however, has reignited debates on the classification of digital assets and adds to the growing divide between regulators and state officials over how cryptocurrencies should be treated under U.S. law.