Recent Lawsuit Claims XRP is an Unregistered Security
As highlighted by Justin Slaughter, the VP of regulatory affairs at Paradigm, the Ripple-associated XRP cryptocurrency was cited as an unregistered security in a lawsuit against Coinbase by Oregon Attorney General Dan Rayfield.
Coinbase responded to the lawsuit by accusing Rayfield of attempting to enforce regulations through legal action and dismissing the claims as baseless.
XRP’s Regulatory Clarity Questioned
Despite having regulatory clarity in the past, XRP has once again been labeled as a “crypto security” in the recent lawsuit.
Federal Judge’s Previous Ruling
In a previous ruling in 2023, a federal judge determined that XRP was not a security when sold to retail investors on public exchanges.
SEC Drops Appeal
Following the departure of former Chair Gary Gensler, the SEC decided to drop its appeal regarding XRP classification earlier this year.