Ripple Labs and Coinbase are leveraging a recent court decision involving Binance to support their ongoing legal battles with the SEC. The case has prompted both companies to advocate for improved regulatory standards following a significant court ruling.
Judge’s Decision on Binance Case
The dispute in question saw Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia mostly deny Binance’s motion to dismiss the SEC’s lawsuit. However, she dismissed claims related to secondary sales of Balance Coin (BNB) as securities and emphasized that the SEC should adhere to an American Legal Model.
Ripple and Coinbase’s Legal Strategies
Coinbase, in its appeal to the Court of Appeals for the Third Circuit, referenced the Binance ruling. They argue that the SEC should establish rulemaking to clearly define the regulatory boundaries for digital assets. Ripple Labs, on the other hand, submitted a “supplemental authority” in their case, underscoring the necessity to delineate the legal status of various types of sales of its XRP token. Ripple highlighted Judge Jackson’s remarks on the drawbacks of making successive regulatory decisions.
Coinbase is challenging allegations that it operated as an unregistered securities exchange. Meanwhile, Ripple has been embroiled in a lengthy lawsuit with the SEC over its sale of XRP, which the agency claims is an unregistered security.
Also Read: Ripple CEO Brad Garlinghouse Criticizes SEC Chair Gensler
Implications for the Crypto Industry
The crypto industry is closely monitoring these cases. A scheduling conference for the SEC’s case against Binance is set for July 9. The outcomes of these cases could strengthen the SEC’s ability to advocate for transparent and consistent regulations, aligning with the desires of Ripple and Coinbase.
As these legal proceedings unfold, there is a growing demand for definitive legal requirements, reflecting the industry’s need for stability within a clear legal framework.
Ripple Labs and Coinbase are using the recent Binance ruling to bolster their legal positions against the SEC. By citing this decision, both companies aim to push for clearer regulatory guidelines in the cryptocurrency space. The results of these cases will be pivotal for the industry’s regulatory landscape.
