Five months in, and the battle between the SEC and Binance shows no signs of letting up! If you thought SEC v. Binance had faded from view, think again. Here’s the latest twist: the U.S. SEC is using the Ripple XRP case to strengthen its lawsuit against Binance, Binance.US, and former CEO Changpeng Zhao.
Here’s the full scoop.
Ripple Case Enters the Picture
In a strategic move, the SEC has included the Ripple class action as additional support in its ongoing case against Binance. This shows the SEC believes the legal findings from the Ripple case are crucial in their arguments against Binance. With most discovery disputes settled, the Binance lawsuit is nearing resolution, with various motions, including a joint request to dismiss the complaint, currently before the court.
Recently, Judge Hamilton ruled in favor of Ripple on several securities violation allegations, dismissing a significant portion of the plaintiff’s claims. However, Ripple CEO Brad Garlinghouse still faces trial over allegations of making misleading statements about XRP sales. Garlinghouse remains confident about clarifying the issue during the trial.
SEC’s Strategic Approach
In the meantime SEC highlights, that Judge Hamilton’s ruling has contradicted its previous ruling, particularly the SDNY court’s finding that XRP programmatic sales are not securities. He noted that “programmatic buyers may have purchased XRP with the expectation of profits derived from Ripple’s efforts,” a point that has stirred debate within the XRP community.
Regulatory Impact
Nevertheless, the SEC plans to use Judge Hamilton’s opinion and Garlinghouse’s statements strategically. Their goal is to influence the Second Circuit’s upcoming decision on Judge Torres’ summary judgment on XRP, focusing on whether XRP sales should be considered securities.
The SEC’s inclusion of the Ripple case in its arguments against Binance reflects the heightened scrutiny facing the cryptocurrency sector. The outcomes of these high-stakes cases could reshape regulations, potentially impacting major cryptocurrency exchanges and assets.
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The plot thickens! With another potential landmark ruling on the horizon, the crypto market is watching SEC vs Binance move with bated breath.
