In the Ripple case, a judge said that selling XRP wasn’t the same as selling securities. The SEC is using this case to boost its case against Binance.
The SEC intends to utilize a portion of the Ripple judge’s judgment to influence the outcome of the Ripple appeal.
This demonstrates the broader debate regarding cryptocurrency regulation, as the results of these cases will have an effect on the future of the industry.
It has been five months since the SEC and Binance began their conflict, and there is no indication that it will cease. Be skeptical of your assumption that SEC v. Binance has dissipated from public awareness. The most recent development is that the U.S. Securities and Exchange Commission (SEC) is leveraging the Ripple XRP case to bolster its litigation against Binance, Binance.US, and former CEO Changpeng Zhao.
The SEC has strategically incorporated the Ripple class action as supplementary support in its ongoing case against Binance. This indicates that the SEC considers the legal findings from the Ripple case to be essential to their arguments against Binance. The Binance lawsuit is on the brink of resolution, as the court is presently considering a variety of motions, including a joint request to dismiss the complaint, with the majority of discovery disputes resolved.
In a recent ruling, Judge Hamilton sided with Ripple on a number of securities violation allegations, dismissing a substantial portion of the plaintiff’s claims. Nevertheless, allegations of making misleading statements regarding XRP sales continue to loom over Ripple CEO Brad Garlinghouse, who is currently awaiting prosecution. Garlinghouse is optimistic about the possibility of resolving the matter during the trial.
In the meantime, the SEC emphasizes that Judge Hamilton’s decision has contradicted its previous judgment, particularly the SDNY court’s determination that XRP programmatic sales are not securities. He observed that “programmatic buyers may have purchased XRP with the expectation of profits derived from Ripple’s endeavors,” a point that has sparked debate within the XRP community.
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