The department said in its official release that state action is needed to fill the regulatory gap left by federal authorities:
“States must fill enforcement vacuum being left by federal regulators who are abandoning these cases under Trump administration.”
This legal action is part of a wider trend where U.S. states are increasing oversight of crypto platforms as federal enforcement slows down.
Coinbase XRP Case Adds More Legal Pressure
Coinbase, a U.S.-based publicly traded crypto exchange, now faces scrutiny over its treatment of XRP and other major tokens. The lawsuit mentions Aave (AAVE) at $151.68, Avalanche (AVAX) at $21.61, Uniswap (UNI) at $5.60, and Near Protocol (NEAR) at $2.29.
Also listed is wrapped LUNA (wLUNA), a version of the failed Terra (LUNA) project. However, the complaint excludes LUNA, without explaining the reason for this omission.
Justin Slaughter, Paradigm’s Vice President of Regulatory Affairs, described the lawsuit as a “kitchen sink” case because of the broad number of assets involved. The complaint targets trading through both Coinbase Platform and Coinbase Prime.
The lawsuit says:
“Coinbase—through the Coinbase Platform and Prime—has made available for trading in Oregon crypto assets that are offered and sold as investment contracts, and thus as securities.”
Oregon’s XRP Action Follows Ripple SEC Case
XRP was already part of a high-profile case brought by the U.S. Securities and Exchange Commission (SEC) in December 2020. The SEC accused Ripple Labs of raising $1.3 billion through an unregistered securities offering.
That case ended in March 2025, when the SEC dropped its claims against Ripple executives. However, the end of that lawsuit did not bring clear answers about XRP’s legal classification. Now, Oregon’s action puts XRP back under legal review.
Paul Grewal, Coinbase’s Chief Legal Officer, responded on April 21 in a post on X, expressing concern about the legal strategy. Coinbase had added XRP futures to its derivatives platform just days earlier on April 21.
Wrapped Assets Raise More Legal Questions
The complaint’s inclusion of wrapped tokens such as wLUNA, and the exclusion of core tokens like LUNA, introduces legal uncertainty. The filing does not provide a technical or regulatory explanation for the choices.
This selective inclusion could affect how courts and regulators assess derivative tokens, especially when dealing with collapsed projects or tokens tied to external chains.
The lawsuit did not explain why some crypto assets were named while others were left out. The case is expected to examine whether these digital assets qualify as investment contracts, which under state law would label them as securities.
This lawsuit represents one of several recent state-led efforts to enforce securities rules in the crypto sector. It reflects growing concern among state officials about reduced federal enforcement, especially from the SEC.
While the court has not yet set a trial date, the case could shape how states interpret crypto regulations independently. Coinbase and other platforms may face increased scrutiny if more states follow Oregon’s legal approach.
