With the recent lawsuits against major cryptocurrency exchanges like Binance and Coinbase, some are finding similarities in the charges and implications that occurred in the Ripple case. John Deaton, the lawyer representing over 70,000 XRP token holders in a lawsuit filed by the US SEC, suggests that possible political motives could be influencing the legal actions against these two prominent crypto exchanges.
It’s worth noting that the timing of these lawsuits is somewhat curious, especially considering that Coinbase’s direct listing on NASDAQ was approved by the SEC itself back in 2019. Interestingly, the XRP token was also among the tokens listed on the Coinbase platform when the IPO application was filed. Subsequently, in 2020, the SEC filed a lawsuit against Ripple, causing Coinbase to delist the token.
In the current regulatory climate, as cryptocurrency becomes an increasingly important topic in the upcoming US presidential election of 2024, Deaton suggests a connection between Senator Elizabeth Warren, SEC Chair Gary Gensler, and a push for the launch of central bank digital currencies (CBDCs). This relationship could potentially explain the aggressive enforcement actions against crypto exchanges.
Moreover, Deaton argues that Wall Street giants such as Goldman Sachs and JP Morgan could have an interest in gaining a share of the lucrative crypto market business before the United States administration implements a comprehensive digital assets regulatory framework. The attorney elaborated on this in a recent CryptoLawTV session, stating, “Or maybe Goldman Sachs and JP Morgan are upset over the success of Coinbase.”
Regardless of the reason, the crypto market itself does not seem to be particularly impacted by these successive lawsuits, with Bitcoin’s price rising around 5% following the news on the Coinbase lawsuit.
While it remains to be seen whether these lawsuits are motivated by politics, a CBDC agenda, or competition from traditional financial institutions, their outcomes will hold significant implications for the future of the cryptocurrency sector. It is crucial for investors to remain informed and do their due diligence when investing in digital assets. As always, the responsibility for personal financial decisions lies with the individual market participants.
Source: Coingape
