Ripple and Coinbase Use Binance Win to Contest SEC Claims

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As an analyst with a background in law and experience in the cryptocurrency industry, I believe that the ongoing legal battles between Ripple Labs, Coinbase, and the U.S. Securities and Exchange Commission (SEC) highlight the need for more clarity and consistency in regulatory frameworks for digital assets. The recent court order in Binance’s case, which resulted in a partial dismissal of certain charges against the exchange, has become a significant reference point for these companies as they argue for formal rulemaking to better define the regulatory perimeter for crypto assets.

Coinbase and Ripple Labs are leveraging Binance‘s landmark legal victory against the U.S. Securities and Exchange Commission (SEC) to mount challenges in their ongoing cases with the regulatory body. They contend that the SEC’s stance requires more definitiveness and uniformity, prompting a call for formal rulemaking to establish a clearer boundary for digital assets regulation.

Ripple, Coinbase Cite Binance Case Against SEC

Ripple and Coinbase have strengthened their legal positions in response to recent developments in Binance’s SEC lawsuit. They argue that a recent court ruling in this case sets a precedent, suggesting the need for clear-cut regulations regarding cryptocurrencies. In their latest court submission, Ripple specifically points to the judge’s observation that cryptocurrency transactions don’t easily fit into current securities laws, such as those based on the 1946 Howey Test. This test plays a significant role in determining if a transaction is an investment contract and subject to securities regulation.

 

Coinbase has expressed worries about the Securities and Exchange Commission (SEC)’s wide interpretation of securities laws in the crypto sector. The platform believes this extensive application needs more clarity and definition, leading them to advocate for a clear-cut rulemaking process. In their argument, Coinbase refers to the recent Binance ruling as evidence supporting the need for regulatory certainty, highlighting the inconsistencies within current regulatory practices.

 

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Coinbase Demands Clarity in SEC Regulatory Battle

As a crypto investor, I’ve noticed the Securities and Exchange Commission (SEC) has been actively engaging with different cryptocurrency platforms and their assets. They’ve labeled some of these operations as unregistered securities offerings. In the case of Ripple, the SEC filed a lawsuit in December 2020, claiming that Ripple raised over $1.3 billion by selling its XRP token without proper registration. However, in an unexpected turn of events, Judge Analisa Torres ruled that certain “programmatic sales” of XRP didn’t qualify as securities transactions. Now, Ripple is trying to use this nuanced interpretation to challenge the broader SEC claims.

 

Coinbase and Ripple are undergoing comparable regulatory challenges. The Securities and Exchange Commission (SEC) alleges that Coinbase functioned as an unregistered securities exchange, a contention that Coinbase disputes. In response, they’ve called for a formal rulemaking process to establish clearer regulatory guidelines. Both companies refer to recent court decisions, such as the Binance case, to advocate for a more defined and transparent regulatory structure from the SEC. They emphasize that the current situation is ineffective and uncertain.

Crypto Firms Rally Around Binance Court Decision

In the ongoing legal battles between crypto entities and the Securities and Exchange Commission (SEC), Binance’s partial victory in its lawsuit has served as an important reference point. Although Judge Amy Berman Jackson allowed most of the SEC’s claims against Binance to move forward, her decision to dismiss the charge concerning secondary sales of Binance Coin (BNB) as securities has been seen as a noteworthy legal precedent. Coinbase and Ripple have specifically referenced this aspect of the ruling in their own ongoing litigation with the SEC.

 

Anticipated advancements are on the horizon, as the SEC has planned a conference regarding their case against Binance for the seventh of July. Simultaneously, Coinbase and Ripple remain vocal in their pursuit of regulatory clarity, asserting that it is essential for the industry’s stability and expansion.

 

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2024-07-03 01:28