ripple and Coinbase Use Binance Win to Counter SEC Claims
Coinbase and Surge Labs The companies are using binance’s significant legal victory to challenge ongoing litigation with the U.S. Securities and Exchange Commission (SEC). Both companies argue that the SEC’s approach needs greater clarity and consistency, and that formal rulemaking is necessary to better define the regulatory framework for digital assets.
Ripple and Coinbase Explain Binance Case to SEC
Ripple Labs and Coinbase They intensified their legal defense by referring to a new court decision that included BinanceThe SEC has won a partial dismissal of its case. The companies argue that this precedent underscores the SEC’s need to create clear regulations. In its latest court filing, Ripple emphasizes the judge’s view that the cryptocurrency does not fit seamlessly into existing securities laws, such as those established in 1946. Hello test. This test is crucial to determining whether a transaction qualifies as an investment contract and therefore falls within the scope of securities regulation.
Coinbase also raised concerns about the SEC’s broad interpretation of securities laws as they apply to the crypto industry. The exchange argues that this broad application could have been more comprehensive and better defined, and that a definitive rulemaking process could have been pushed to provide legal clarity. In its appeal, Coinbase cited the recent Binance decision to support its argument for the rulemaking, arguing that the decision highlighted inconsistencies in current regulatory practices.
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Coinbase Seeks Clarity in SEC Regulatory Battle
The SEC is looking into various cryptocurrency platforms and assets, and has deemed some of their operations as securities offerings without proper registration. In the Ripple case, the SEC alleged in a December 2020 lawsuit that Ripple generated over $1.3 billion from its own sales. XRP tokensThe SEC classified it as an unregistered security. However, in a significant reversal, Judge Analisa Torres ruled that certain “programmatic sales” of XRP did not constitute securities transactions, introducing a nuanced interpretation that Ripple is now attempting to leverage to counter the broader SEC allegations.
Coinbase is also facing similar regulatory scrutiny. The SEC has alleged that the platform operates as an unregistered securities exchange, a claim Coinbase denies and has called for a formal rulemaking process to clarify these regulatory boundaries. Both Coinbase and Ripple have used recent judicial decisions, particularly the Binance case, to argue for a more structured and transparent regulatory framework from the SEC, arguing that the current situation is inefficient and uncertain.
Crypto Firms Rally Around Binance Court Decision
Binance’s partial victory in its own SEC case has become a strategic reference point for other crypto assets facing legal challenges with the regulator. Judge Amy Berman Jackson dismissed charges related to Binance’s secondary sales, despite the SEC’s decision to move forward with most of its allegations against Binance. Binance Coin (BNB) securities were perceived as an important legal precedent. Coinbase and Ripple specifically emphasized this aspect of the decision in their ongoing lawsuit.
More developments are expected with a conference scheduled for July 9 for the SEC’s lawsuit against Binance. Meanwhile, Coinbase and Ripple continue to press for regulatory clarity, which they argue is crucial to the stability and growth of the industry.
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Maxwell is a crypto-economic analyst and blockchain enthusiast who is passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its impact on economic freedom and social well-being.
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