- Oregon’s lawsuit targets Coinbase over XRP despite federal court rulings stating XRP is not a security under U.S. law.
- Coinbase had delisted XRP for years, only relisting it after a federal judgment, weakening Oregon’s legal grounds.
- Legal experts argue the state’s claims may conflict with prior SEC actions and create regulatory uncertainty for crypto firms.
The Oregon Department of Justice has filed a lawsuit against Coinbase, accusing the cryptocurrency exchange of offering unregistered securities, including XRP. The state’s attorney general, Dan Rayfield, initiated the legal action despite prior developments at the federal level that cleared similar allegations. This move has drawn immediate criticism from legal professionals within the cryptocurrency community.
Bill Morgan Labels Oregon’s XRP Claims as Outdated
XRP advocate Australian attorney Bill Morgan has strongly condemned the lawsuit on the basis that it seems to ignore established legal court decisions. XRP is not considered a security based on the previous decision by U.S. District Judge Analisa Torres. The lawsuit contradicts both findings from Judge Torres that XRP lacks security designations as well as recent industry-wide definitions regarding token classification.
Coinbase removed XRP from its exchange in December 2020 because the U.S. Securities and Exchange Commission sued Ripple. The token was only reinstated after Judge Torres’ ruling, which clarified XRP’s legal status. Morgan highlighted that the token was not available on Coinbase for nearly three years, undermining the basis of Oregon’s complaint.
Coinbase Responds, Citing SEC Decision
Coinbase issued a public response to the lawsuit, stating that the Oregon AG’s claims are effectively reintroducing issues that were already addressed at the federal level. The SEC had previously dropped similar charges against Coinbase with prejudice, which prevents them from being filed again. The exchange referred to the Oregon lawsuit as an effort to “resurrect the dead.”
Legal observers point out that state-level enforcement efforts like Oregon’s may create confusion and conflict with federal decisions. Bill Morgan’s comments reflect broader concerns about inconsistent legal frameworks in the cryptocurrency space. He described Oregon’s complaint as “dystopian nonsense” and warned of its potential to mislead the public on XRP’s legal status.
