Coinbase Is Being Sued by Oregon's Department of Justice. Here's What We Know

More details are being revealed regarding the lawsuit Coinbase has been hit with by Oregon's Department of Justice. Last week, we reported how the State's DOJ

The State of Oregon's Department of Justice has sued Coinbase for allegedly failing to register as a securities broker-dealer and comply with state financial laws, according to a lawsuit viewed by Chainalysis.

The lawsuit, which was filed last week Thursday, comes as federal regulators are accused of leaving a "regulatory vacuum" in crypto.

The complaint names several other crypto projects and firms that may be dragged along with Coinbase in the legal action. In fact, Oregon's case covers even more cryptocurrency tokens than the original SEC lawsuit. This means that the repercussions of this case could affect an even larger chunk of the industry.

Notably, Ripple's altcoin XRP was strictly mentioned as a security in the filing, again opening the debate of whether the crypto should be classified as a security or not.

Several other tokens were also mentioned: AAVE, AVAX, AXS, CHZ, LINK, MATIC, SOL, and UNI.

Coinbase CLO Notifies Oregon Clients

On Twitter, Coinbase's Chief Legal Officer, Paul Grewal, called out Oregon Attorney General Dan Rayfield, criticizing the lawsuit's sweeping claims against various crypto assets.

"XRP, SOL, whatever: basically no matter your asset or project, OR AG @DanRayfield is accusing you of violating securities laws and fleecing your token holders. It's why we notified about 560k @coinbase customers in Oregon about the unlawful action taken in their name."

Grewal pointed out that, regardless of the project—XRP, SOL, or others—the Attorney General is accusing them all of violating securities laws and misleading investors.

He also revealed that Coinbase had notified over 500,000 Oregon users about the case, warning them that the lawsuit was filed in their name without their consent.

According to Grewal, this legal action is not just targeting Coinbase but the broader crypto industry, raising concerns about regulatory overreach.

What Does This Mean for XRP?

While Oregon’s lawsuit is limited to state-level jurisdiction, it’s decision could have broader impact outside of the State’s borders.

Ripple, which just recently saw itself under less regulatory pressure from the Securities and Exchange Commission’s decision to drop the lawsuit against the firm, could find itself under renewed pressure as Oregon’s Attorney General goes after XRP and its regulatory status.

As we still are on the very early upbringings of the case, and there is still a lot of information to be uncovered—the overall perspective is that Oregon doesn’t have a lot of ground to question Federal regulators.

What doesn’t help is the fact that even under the new administration, the SEC has still not decided whether cryptocurrencies like XRP are securities or not. Instead, the commission just dropped the cases involving these firms, which leaves no legal precedent or clarity on how similar assets will be regulated moving forward.

While the “Crypto Task Force” continues to work on showing up with a clearer regulatory framework to present to Congress, progress remains slow, leaving the industry in a state of uncertainty.

News data source: kdj.com

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