- Coinbase fights Oregon’s 31 unregistered token complaint.
- The company seeks federal court handle the securities law dispute.
- Oregon’s claims include XRP, Solana, and other major tokens.
Coinbase is fighting a lawsuit filed by Oregon’s Attorney General, stating the cryptocurrency exchange broke state securities laws by letting traders buy 31 tokens, among them XRP, without registration. The company wants to have the case handled in federal court, arguing that the issues are about federal law.
Coinbase Seeks Federal Court Jurisdiction
Coinbase argues that Oregon’s case raises questions about how federal law defines an investment contract. Paul Grewal, the Chief Legal Officer of Coinbase, said at X that the case should be heard by federal courts since it has national significance. The company feels that the Oregon claims go beyond what the state can legally do and contradict federal securities laws.
Multnomah County Circuit Court is suing Coinbase, accusing the company of offering XRP, Solana, and UNI without obtaining the legally required registrations. Attorney General Rayfield claims these tokens satisfy the requirements for securities, which can harm consumers. Coinbase explains that the state’s actions could lead to different rules for crypto in every state.
Coinbase warned about 560,000 Oregon customers about the lawsuit, stating that it was an illegal overstep. In their argument, the company mentioned a previous Securities and Exchange Commission (SEC) case that was closed because of no merit. The exchange wishes for one national policy to regulate cryptocurrency.
Regulatory Tensions Escalate
The number of tokens included in Oregon’s lawsuit, which is 31, is higher than the 13 tokens the SEC named in their own case against Coinbase. The list of popular tokens in the state comprises AAVE, FLOW, and LINK. The legal team at Coinbase says that Oregon went against a decision by Judge Analisa Torres, which stated that not all XRP sales can be considered securities.
Grewal pointed out that Oregon’s complaint does not deal with this federal precedent. He pointed out that actions in some states could weaken the effort to agree on clear crypto regulations, which could hurt both innovation and the needs of consumers. Coinbase closely ties its plan to get federal supervision to its struggle against different state rules.
The SEC dropped its case, prompting Coinbase to sue, while industry members claim Oregon’s actions reflect political motivations. The stance of Coinbase shows that it wants to use legal action to block excessive regulatory actions. How the case is decided could influence how countries around the globe manage cryptocurrencies.
Coinbase’s stock has faced pressure amid multiple legal challenges. The SEC is currently investigating user statistics. A data breach that may have cost up to $400 million has increased the company’s regulatory issues. Still, Coinbase continues to fight for its operations and calls for stronger government control.
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