The ongoing legal battle between Ripple and the SEC has become increasingly significant in light of recent lawsuits filed against Coinbase and Binance. Whether XRP is ruled as a security or not will surely influence the outcomes of the cases against these two major crypto exchanges, according to statements made by crypto lawyers to Cointelegraph.
Ripple has been fighting the SEC’s allegations since December 2020, with the regulator claiming that the company has been offering unregistered securities via XRP since 2013. The SEC filed lawsuits against Coinbase and Binance on June 6 and 5 respectively, alleging similar violations of securities law.
Pro-XRP lawyer John Deaton believes that the SEC is “well aware” of the imminent release of Judge Torres’ decision in the Ripple case and purposefully filed the new cases in advance to maintain political and legal momentum — regardless of the outcome.
Although a ruling in the Ripple case would not be “binding precedent” for the lawsuits against Coinbase and Binance, the judges presiding over these cases are likely to pay close attention to the outcome. As such, the ripple effect (pun intended) of the judge’s determination regarding XRP’s classification as a security could be significant in shaping future rulings.
Yet, it’s crucial to remember that this influence cuts both ways; a favorable outcome for the SEC in the Ripple case would also likely bolster its arguments in the Coinbase and Binance cases. In either outcome, the broader crypto industry will be watching closely.
Meanwhile, Deaton has also posited that the SEC may change its approach to crypto regulation once traditional financial institutions like JPMorgan and Goldman Sachs become more involved in the crypto space. This would be an interesting development to monitor as the markets continue to evolve.
In conclusion, while the Ripple case remains a crucial and closely watched development, it is just one element in a broader landscape of regulatory challenges and potential transformations in the cryptocurrency sector. The outcomes of the SEC’s cases against Coinbase and Binance, as well as future regulatory actions and collaborations with traditional financial institutions, are all components of an increasingly complex and dynamic environment, both for investors and the industry as a whole.
Source: Cointelegraph
