Ripple’s case with the Securities and Exchange Commission (SEC) is about to bring another trajectory to the bunch of lawsuits levied by the United States regulator this week against Binance and Coinbase. Likely, the judges presiding over the SEC’s lawsuit against Binance and Coinbase are listening to hear the final verdict in the Ripple vs SEC lawsuit.
The lawyers are certain that the classification of XRP either as securities or as non-securities will play a vital role in the next phase of their lawsuits.
Ripple Vs SEC Two-Year Long Lawsuit
The U.S. regulator currently under the leadership of Gary Gensler, filed a lawsuit against blockchain payment platform Ripple Labs in December 2020 for violating federal securities law. Ripple allegedly offered XRP for sale while the token was unregistered under the regulator and made a profit of around $1.5 billion from the sales.
For almost two years and a half, this lawsuit has been ongoing and several pieces of information including the presentation of Hinman’s Speech, have surfaced to buttress Ripple’s stance that its native cryptocurrency is not a security. It is not certain what the verdict of Judge Analisa Torres will be but pro-XRP lawyer John Deaton recently stated that he believes the SEC’s chances of success are “less than 3%”.
SEC Sues Binance For Listing Securities
Binance became a victim of this same charge on Monday, June 5th after the SEC sued the crypto exchange, its U.S. arm, and the Chief Executive Officer (CEO) Changepeng Zhao.
A long list of charges including operating unregistered U.S. financial companies, misleading investors about the companies’ risk management practices, and inflated trading volumes were brought against the Binance. The exchange was also called out for flouting Know-Your-Customer (KYC) rules.
In the 136-page document, CZ was tagged a controlling person who has placed investors at risk by receiving them. It is sadly coming at a time when there are ongoing rumours that Richard Teng, an executive who joined the largest cryptocurrency exchange in the world less than two years ago may succeed Zhao.
Coinbase Allegedly Operates Unregistered Broker
Amidst its ongoing lawsuit with the SEC, the American cryptocurrency exchange was also indicted for operating an unregistered broker and exchange operator, thereby violating regulatory requirements. Several tokens were listed in the lawsuits including SOL, ADA, MATIC, MANA, COTL, AXS, SAND and many more.
Many crypto heavyweights including Ripple have united to fight for regulatory clarity from U.S. regulators.