Gemini co-founder Tyler Winklevoss has issued a sharp and unapologetic rebuke to Oregon Attorney General Dan Rayfield in response to the state’s newly filed lawsuit against Coinbase.
His remarks came as the crypto community reacted strongly to the legal action, which accuses the exchange of offering unregistered securities, including XRP.
Winklevoss did not hold back his criticism regarding the lawsuit, calling the attorney general a “clown” for disregarding a key federal court ruling from 2023. That decision stemmed from the SEC’s case against Ripple, which found that XRP is not a security when traded on public exchanges.
Winklevoss argued that the Oregon case ignores this precedent and reopens a matter already settled at the federal level.
He accused Rayfield of wasting public resources by challenging a decision made in federal court, stating that such legal actions create confusion instead of clarity. Winklevoss also called for the attorney general’s impeachment, suggesting the lawsuit is politically driven and legally flawed.
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Maybe Oregon’s AG didn’t get the memo. A U.S. Federal judge already ruled that XRP is NOT a security. Impeach this clown 🤡 for wasting taxpayer money and blatantly defying the law. https://t.co/viuTwbMxov
— Tyler Winklevoss (@tyler) April 22, 2025
Legal Battle Rekindles Industry Frustration
In its complaint, the Oregon Department of Justice claimed the lawsuit aims to fill what it describes as a regulatory void left by the previous federal administration. It contends that Coinbase violated Oregon law by offering specific tokens as investment contracts, which the department classifies as securities under state law.
Coinbase defends its services by stating that its operations follow current federal guidelines while strongly rejecting the proposed lawsuit. Paul Grewal, Coinbase’s Chief Legal Officer, labeled this complaint outdated because it fails to acknowledge the XRP ruling and recent enforcement decisions made by federal courts.
He states that state actions create confusion about crypto business regulations and introduce more ambiguity into the sector for investors and businesses alike. Grewal emphasized that Coinbase remains determined to protect itself and the entire industry from state-level regulatory actions.
Legal advances have failed to persuade Coinbase to withdraw from its position. XRP received more support from the company through its derivatives platform with new futures contracts.
This strategic decision demonstrates the company’s conviction that its assets’ legal position remains solid despite continued regulatory actions from state authorities.
The ongoing lawsuit has raised new fears among Crypto industry stakeholders about states potentially creating regulatory conflicts that oppose federal cryptocurrency laws. Industry leaders predict that regulatory uncertainty may drive away project investments and new digital asset development.
36crypto previously reported that Bill Morgan, a prominent lawyer in the XRP community, reacted to the lawsuit, classifying it as “dystopian nonsense.”
He stressed that Coinbase delisted XRP from its platform following the SEC lawsuit, and only re-listed it once the court ruled that XRP in itself is not a security, hence, demeriting Oregon’s claim of Coinbase offering unregistered securities in XRP.
According to Winklevoss, many others within the cryptocurrency field share his concern about state regulators who extend their authority to areas the federal courts previously settled. The Oregon lawsuit will produce decisive results that will reshape national digital asset categorization and governance regulations.
Conclusion
The clash between Gemini’s Tyler Winklevoss and Oregon’s attorney general highlights growing tensions between state and federal interpretations of crypto law. As Coinbase prepares to fight the case, the industry is watching closely to see how this legal challenge may shape the future of digital asset regulation.
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