Coinbase, one of the leading cryptocurrency exchanges in the U.S., is once again at the center of a legal dispute. The Oregon Attorney General's Office has sued Coinbase, claiming that a total of 31 altcoins, including XRP, Uniswap (UNI), Chainlink (LINK), Aave (AAVE), and Maker (MKR), are securities. This lawsuit came just before the exchange launched XRP futures contracts for U.S. users on April 21. This development has once again brought the ongoing uncertainty regarding whether XRP is a security to the forefront.

The Security Status of XRP Has Become a Topic of Debate Again

The lawsuit filed by the Oregon Attorney General's Office goes beyond the accusations involving 13 altcoins that were previously listed by the U.S. Securities and Exchange Commission (SEC). The Attorney General's Office argues that Coinbase has offered 31 different altcoins for sale as 'investment contracts' through both its main exchange and Coinbase Prime. It was stated in the lawsuit that the relevant securities laws should apply to these coins.

The most notable point is that XRP is also on the list. Coinbase had removed XRP from its platform following the SEC's lawsuit against Ripple in 2020. However, in July 2023, Judge Analisa Torres issued a summary judgment stating that XRP is not a security, and Coinbase had relisted the altcoin following this development. The absence of any reference to this judicial decision in the Oregon Attorney General's lawsuit has raised questions.

Doubt About the Timing of Coinbase's XRP Futures Move

Coinbase's launch of XRP futures contracts on April 21 on a derivatives platform regulated by the CFTC was interpreted as a reaffirmation of the company's confidence that the altcoin complies with regulations. However, the lawsuit in Oregon shows that this confidence is not shared by many authorities. Especially, the significantly different interpretations of cryptocurrencies by various institutions and states highlight the legal uncertainties in the sector.

The inconsistency between federal and state regulations in the U.S. puts serious pressure on cryptocurrency companies. While institutions like the CFTC approve the suitability of XRP for derivatives trading, some state authorities still consider the altcoin a security. This creates a significant legal gray area for both major exchanges like Coinbase and investors.