Ripple case more crucial than ever amid Coinbase, Binance SEC crackdown: Lawyers
The judges presiding over Coinbase and Binance’s lawsuits will likely watch the results of the SEC v Ripple case closely, crypto lawyers told Cointelegraph.
Ripple has been in a legal battle with the SEC since December 2020. The regulator alleges it was offering unregistered securities via XRP (XRP) since 2013.
On June 6 the SEC filed a lawsuit against Coinbase also alleging that it has been offering unregistered securities. A day before it filed a lawsuit against Binance containing some similar allegations.
Lawyer James Murphy, known as “MetaLawMan” on Twitter, explained in a series of tweets on June 9 that a favorable outcome for Ripple could “undermine the entire basis for the SEC’s case” against both, Coinbase, and Binance.
1/ The stakes just keep getting higher for the ruling in SEC v. @Ripple. Here's why.If Judge Torres rules that $XRP tokens trading on secondary markets are Not Securities--it would undermine the entire basis for the SEC's case against @Coinbase and much of the @Binance case.
However, he also warned that “before anyone gets too excited,” a ruling by Judge Torres in the Ripple case would not be “binding precedent” for these recent filings.
This means that the judges for the Coinbase and Binance lawsuit, will “not be bound to rule the same way,” as only decisions of the Court of Appeals and the Supreme Court have that influence.
Speaking to Cointelegraph, pro-XRP lawyer John Deaton believes the SEC is “well aware” that Judge Torres’ decision in the Ripple case will be published “in the very near future.”
Deaton believes that the SEC purposefully filed these new cases ahead of that result, in case the regulator faces an unfavorable outcome in the Ripple case, stating:
Murphy believes the judge assigned to the
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