Cardano (ADA), 30 Cryptos Impacted in Coinbase Lawsuit: Here’s List

Oregon Attorney General Dan Rayfield has filed a lawsuit against Coinbase, accusing the exchange of facilitating the sale of unregistered securities to Oregon residents. This legal challenge encompasses 31 cryptocurrencies, including Cardano (ADA), Ripple (XRP), and Solana (SOL), marking a significant escalation in regulatory scrutiny of the crypto industry.

• Oregon Attorney General sues Coinbase for selling unregistered securities.
• 31 cryptocurrencies listed as securities, including ADA, XRP, and SOL.
• Lawsuit broader than SEC’s dismissed case, which named only 13 tokens.

Dan Rayfield’s lawsuit against Coinbase is a stark reminder that the regulatory landscape for cryptocurrencies remains fraught with challenges. Unregistered securities are financial assets that have not been approved by regulatory bodies for public sale. This case claims that Coinbase has been selling such assets to Oregon residents, putting investors at risk. The list of cryptocurrencies involved is extensive, covering a range from established names like Cardano and Ripple to lesser-known tokens.

The Oregon lawsuit stands out because it is more comprehensive than the SEC’s lawsuit, which was dismissed earlier this year and named only 13 cryptocurrencies. This broader approach indicates a trend where state-level authorities are stepping in to fill what they see as a regulatory vacuum left by federal agencies, especially under the Trump administration.

Justin Slaughter, a former SEC Senior Adviser, remarked on the expansive nature of the Oregon lawsuit, stating, “More to come, but one thing that jumps out about the Oregon AG suit is it actually covers many more tokens than the SEC complaint did, with 31 tokens claimed to be unregistered securities, including UNI, AAVE, FLOW, LINK, MKR, and even XRP. It’s a true kitchen sink lawsuit.”

Paul Grewal, Coinbase’s Chief Legal Officer, responded to the lawsuit, criticizing its broad scope and potential impact on the industry. He said, “XRP, SOL, whatever: basically no matter your asset or project, Oregon AG Dan Rayfield has accused you of violating securities laws and fleecing your token holders. It’s why we notified about 560,000 Coinbase customers in Oregon about the unlawful action taken in their name.”

The implications of this lawsuit are significant for both investors and the cryptocurrency industry. For investors, the risk associated with unregistered securities is highlighted by examples like the drastic price drop of Internet Computer (ICP) from $700 to $7 per share, resulting in substantial losses. When a cryptocurrency is classified as a security, it can impact its trading and development, leading to increased regulatory oversight and potential delisting from exchanges.

This lawsuit reflects a broader trend of state-level actions against crypto exchanges, as regulators grapple with how to classify and regulate digital assets. The Howey Test, a legal framework used to determine if an investment contract qualifies as a security, is likely to be central to the arguments in this case. As states like Oregon step in, the crypto industry faces a game of regulatory “whack-a-mole,” where clear federal guidelines are desperately needed.

Despite the challenges, the potential of cryptocurrencies and blockchain technology remains undeniable. Bitcoin and other digital assets represent a fundamental shift towards decentralization and financial freedom, championing privacy and disrupting traditional financial systems. While altcoins like Ethereum fill unique niches, the push for effective accelerationism (e/acc) in the crypto space continues to drive innovation and adoption.

However, it’s crucial to approach the crypto market with a balanced perspective. While the optimism surrounding Bitcoin and blockchain technologies is justified, the industry must also confront its challenges head-on, including regulatory hurdles and the risks posed by unregistered securities. The future of crypto lies in navigating these challenges while maintaining the core principles of decentralization and privacy.

Key Takeaways

What is the main accusation against Coinbase in the Oregon lawsuit?

The main accusation is that Coinbase facilitated the sale of unregistered securities to Oregon residents.

How does the scope of the Oregon lawsuit compare to the SEC’s lawsuit against Coinbase?

The Oregon lawsuit is broader, listing 31 cryptocurrencies as securities compared to the 13 listed in the SEC’s now-dismissed lawsuit.

Which cryptocurrencies are specifically named in the Oregon lawsuit?

The lawsuit names 31 cryptocurrencies including AAVE, ADA, ALGO, AMP, APE, ATOM, AVAX, AXS, CHZ, COMP, DAS, DDX, EOS, FIL, FLOW, ICP, LCX, LINK, MATIC, MIR, MKR, NEAR, POWR, RLY, SAND, SOL, UNI, VGX, wLUNA, XRP, and XYO.

What actions has Coinbase taken in response to the Oregon lawsuit?

Coinbase has notified about 560,000 customers in Oregon about the lawsuit and its implications.

What is the significance of the Oregon lawsuit for the broader cryptocurrency industry?

The lawsuit underscores ongoing regulatory challenges and the potential for more tokens to be classified as securities, which could impact the trading and development of cryptocurrencies.