The post Ripple Case Could Be the Turning Point in SEC’s Battle Against Binance appeared first on Coinpedia Fintech News
It has been 5 months and the judge has still not ruled on Binance’s motion to dismiss. If you think The SEC v. Binance the case has fallen off the radar screen. Here’s the twist in the story. In a strategic move, the U.S. SEC is trying its luck to utilize the Ripple XRP case to bolster its lawsuit against Binance, Binance.US, and former CEO Changpeng Zhao.
Could this be the turning point SEC has been waiting for? Here’s the scoop.
SEC vs Binance: Ripple Case as Key Evidence
The SEC has filed the Ripple class action as a supplemental authority in its ongoing case against Binance. This shows that the SEC finds the legal precedents and findings in the Ripple case relevant to its arguments against Binance. Since most discovery disputes have been settled, the Binance lawsuit is nearing its finish. Several motions, including a joint request to dismiss the complaint, are before the court.
Ripple CEO Faces Trial Amid Partial Victory
Judge Hamilton recently ruled in favor of Ripple on most securities violation allegations, dismissing many of the plaintiff’s claims. However, Ripple CEO Brad Garlinghouse will still face trial over alleged misleading statements about XRP sales. Garlinghouse has publicly stood by his statements, expressing confidence in clarifying the matter during the trial.
Spotlight on Judge Hamilton’s Findings
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.
However, the SEC is gearing up to use this part of Hamilton’s opinion and Garlinghouse’s statements as part of its strategy. This approach aims to influence the Second Circuit’s decision in the appeal against Judge Torres’ summary judgment on XRP. The court must first resolve whether XRP sales constitute securities.
Crypto Impact
The SEC’s integration of the Ripple case into its arguments against Binance highlights the broader regulatory scrutiny facing the cryptocurrency industry. The resolutions of these high-profile cases could significantly shape the regulatory environment and impact the future operations of major cryptocurrency exchanges and assets.
The plot thickens! With another potential landmark ruling on the horizon, the crypto market is watching SEC vs Binance move with bated breath.
