Oregon Lawsuit Targets Coinbase Over XRP Despite Ripple Settlement

New Oregon Lawsuit Targets Coinbase Over XRP—What You Need to Know

A fresh legal battle is brewing in Oregon as a class-action lawsuit takes a swing at Coinbase. The twist? The case is pressing security allegations against XRP—even after Ripple’s $10 million settlement with the U.S. Securities and Exchange Commission (SEC).

So, why is XRP still under fire? And what does this lawsuit mean for crypto traders and investors using Coinbase?

Let’s break it all down.

Looking Back: XRP’s History with the SEC

To understand the current legal tension, it’s important to rewind a little. In July 2023, XRP’s issuer, Ripple Labs, had a partial victory when a judge ruled that XRP wasn’t a security when sold on public exchanges. But Ripple still agreed to pay a $10 million civil penalty in 2024, settling other claims with the SEC, especially related to institutional sales.

You might think that would put all XRP-related legal troubles to rest. That’s where this new Oregon case comes in.

The New Oregon Lawsuit

An investor from Oregon, bringing the case under the state’s securities laws, is accusing Coinbase of selling XRP as an unregistered security between 2020 and 2023.

Main claims from the lawsuit include:

• Coinbase promoted and sold XRP during a time when its legal status was uncertain.
• Investors relied on Coinbase’s actions and reputation, assuming XRP was safe.
• This misrepresentation misled buyers, resulting in financial losses.

The lawsuit seeks class-action status, meaning other investors in Oregon could join in. If accepted, this could set a major precedent not just for XRP, but for other crypto tokens too.

Why Is This a Big Deal?

You’re probably wondering: If Ripple settled with the SEC, why is Coinbase still being sued?

Good question.

The key is that Ripple’s settlement doesn’t automatically protect exchanges like Coinbase from similar claims. Each entity (Ripple and Coinbase, in this case) carries its own responsibilities under securities laws. The Oregon lawsuit argues that Coinbase continued offering XRP even after it was flagged by regulators.

This taps into a bigger issue that’s been stirring for a while—how much responsibility do exchanges have when listing tokens?

If you’re a crypto trader, this lawsuit could signal that regulators and investors are zeroing in on exchanges, not just token issuers.

What This Means for Coinbase

Coinbase isn’t new to legal challenges. The SEC previously alleged that the platform listed several unregistered securities. Coinbase, however, has consistently denied wrongdoing.

If this class-action suit in Oregon succeeds—or even moves forward—it could deepen legal scrutiny into how Coinbase and other exchanges operate and list their tokens.

It also catches Coinbase at a critical moment. As discussed in our breakdown on Coinbase’s future in the U.S. regulatory climate, the platform is walking a tightrope between compliance and innovation.

XRP’s Legal Identity Still in Question?

Even though Ripple’s lawsuit partially clarified XRP’s status on public exchanges, there’s still some gray area—especially under state securities laws like Oregon’s. That’s what this new case is testing.

You might be surprised to know that Ripple’s partial legal win applies mostly at the federal level. States, like Oregon, have their own securities rules, which don’t always follow federal court decisions. This gives plaintiffs room to bring separate legal claims.

So yes, even after Ripple’s high-profile SEC settlement, XRP’s legal status isn’t set in stone.

How This Affects You as a Crypto Investor

If you’re holding cryptocurrencies on platforms like Coinbase or Binance, here are a few things to keep in mind:

• Legal risks can impact crypto prices. XRP’s value saw dips when lawsuits broke out. Other tokens might face similar risks.
• Token listings aren’t “safe bets.” Just because a coin is on a big exchange doesn’t mean it’s legally approved.
• Review your transaction history. If the Oregon case succeeds, similar lawsuits might pop up in other states, which could affect past trades.
• Be cautious with altcoins and emerging tokens. Tokens still navigating regulatory waters might carry more risk than established cryptos like Bitcoin or Ethereum.

Curious about which cryptos are more stable long-term? Check out our post on the most consistent crypto trading strategies to help guide your decision-making.

The Bigger Picture: Regulation Is Heating Up

This lawsuit isn’t just about XRP. It signals a trend: regulators and investors are increasingly holding platforms—not just developers—accountable for listing questionable assets.

We explored this rising trend in our article on how regulation is shaping crypto in 2024.

As the industry matures, we’ll likely see:

• Tighter rules around token listings
• More involvement from state regulators
• Stricter Know Your Customer (KYC) and anti-money laundering standards

This might sound like bad news, but greater regulation could bring more trust and stability in the long run—especially for mainstream investors.

What’s Next for XRP?

Despite the legal battles, XRP remains actively traded, and Ripple continues to expand internationally. However, these lawsuits could have long-term effects on its price, reputation, and usage in the U.S.

If you’re planning to trade or hold XRP, make sure to diversify your asset mix. Tools like our crypto risk calculator can help balance exposure effectively.

Key Takeaways

• The Oregon lawsuit accuses Coinbase of illegally selling XRP as an unregistered security from 2020 to 2023.
• The claim is based on state-level securities laws, not just federal ones.
• Ripple’s settlement with the SEC doesn’t automatically shield exchanges like Coinbase.
• This could open the door for more investors to claim damages if similar suits are filed.
• XRP’s legal status, while partially resolved, remains complicated due to state-specific regulations.

Stay Informed, Stay Ahead

The crypto world moves fast. Lawsuits like this serve as a reminder that regulation is catching up—and it pays to stay informed.

Want to learn how to adjust your trading strategy accordingly? Explore our guide on crypto trading during legal volatility for practical tips.

And as always—before trading any asset—ask yourself: do I understand the risks?

Because as clear as some parts of crypto law may seem, others are still very murky. And in this space, what you don’t know can hurt your wallet.

Stay sharp, and make smart moves.