Ripple XRP Named in New Lawsuit Despite SEC Progress

Ripple XRP is once again facing legal scrutiny, but this time the pressure isn’t coming from the U.S. Securities and Exchange Commission (SEC). The latest controversy involves a new lawsuit filed by the Oregon Attorney General targeting Coinbase, where XRP was one of several crypto assets labeled as securities.

The Oregon Attorney General submitted a legal complaint against the renowned crypto exchange Coinbase, naming XRP alongside other major altcoins like SOL, ADA, LINK, and UNI. The filing alleges these cryptocurrencies were offered and sold as investment contracts, effectively classifying them as unregistered securities under existing U.S. financial regulations.

This unexpected move ignited swift criticism from members of the crypto legal community. Bill Morgan, a legal expert known for his commentary on Ripple’s ongoing litigation, was especially vocal. He criticized the Oregon official for disregarding Coinbase’s delisting of XRP in December 2020 following the SEC’s lawsuit against Ripple. Coinbase relisted XRP in mid-2023 after a key court determination clarified that secondary market sales of the token did not constitute investment contracts.

“No one could have the imagination to make up this dystopian nonsense,” Morgan commented in reaction to the state’s litigation approach. He emphasized the inconsistency between the state’s claims and the evolving regulatory perspective on XRP.

This isn’t Coinbase’s first legal confrontation with a public agency. Nearly two years ago, the SEC filed a comprehensive lawsuit against Coinbase, accusing the platform of offering unregistered securities. Intriguingly, in that case, XRP was excluded, while other major cryptocurrencies such as SOL, ADA, and MATIC were labeled as securities.

Fast-forward to 2024, and the regulatory climate seems to be softening. The SEC has recently stepped back from several legal conflicts with crypto entities, including a noteworthy legal retreat involving Coinbase. However, despite Ripple’s recent positive developments with the SEC, the Oregon case adds yet another legal hurdle for XRP.

Ripple vs. SEC Nearing Conclusion

Ripple has made substantial strides in its long-standing legal battle with the SEC. Last month, Ripple CEO Brad Garlinghouse announced that the SEC had decided to withdraw its latest appeal, signaling that the case may finally be approaching its end. Ripple’s own chief legal officer, Stuart Alderoty, also confirmed this critical update.

The Ripple ecosystem welcomed the news with optimism, seeing it as the potential closure of a legal saga that has hovered over the project for over four years. However, legal formalities are still unfolding. Ripple and the SEC have since filed a joint motion requesting a pause on their individual appeals, and the Second Circuit Court of Appeals has officially approved that motion.

Although this pause could indicate a step closer to settlement, the SEC has not publicly commented. Attorney James Filan called attention to a mandate requiring the agency to file a status report within 60 days of the court ruling, suggesting more clarity may be on the horizon soon.

Despite signs of closure, market analysts continue to remind investors that any final judgment may have limited effect on XRP’s price. The optimistic expectations surrounding the conclusion of the Ripple-SEC case, they note, might already be reflected in the current trading price of XRP.

Related: Expert Advice: Sell XRP If You’re Confused

As Ripple works through residual legal complexities with the SEC, the Oregon complaint brings new heat to XRP’s regulatory journey. Whether this state-level action holds water or crumbles under legal scrutiny remains to be seen. But one thing is clear: XRP’s legal challenges are far from over.