Ripple and Coinbase Leverage Binance Victory to Challenge SEC Allegations

Coinbase and Ripple employ a Binance court ruling as the basis for their SEC complaints, demanding clear regulation.

HIGHLIGHTS

• Coinbase and Ripple Labs reference a Binance court ruling to challenge their SEC cases, seeking clear regulatory guidelines.
• Ripple highlights a judge’s comment on the mismatch between cryptocurrency operations and traditional securities laws, such as the Howey Test.
• Coinbase criticizes the SEC’s broad application of securities laws to crypto, pushing for a formal rulemaking process to establish clear regulations.

Coinbase and Ripple Labs use Binance’s pivotal legal victory to challenge ongoing cases with the U.S. Securities and Exchange Commission (SEC). Both companies argue that the SEC’s approach needs more clarity and consistency, necessitating formal rulemaking to define the regulatory perimeter for digital assets better.

Read more:-Binance CEO Says They Will Maintain Their Support For USDC In Europe

Ripple, Coinbase Cite Binance Case Against SEC

In seeking partial dismissal of its lawsuit, Binance has been mentioned by Ripple Labs and Coinbase in recent court filings. Therefore, according to them, this shows that this agency sets no proper rules. The most recent case filing from Ripple on cryptocurrency law cited the judge’s comment: 

“This is not an issue where you can just write a few words on paper.”Howey Test, established in 1946, is the yardstick for determining if a given transaction is an investment contract and consequently falls under securities regulation.

Coinbase has raised concerns regarding the SEC’s understanding of securities regulations in relation to the crypto space. It suggests that this can be wider and more specific with Coinbase insisting on a rulemaking approach to achieve legal certainty. Coinbase cited Binance’s judgment in its appeal for rulemaking as it argued that this proved inconsistency in the application of existing regulations.

Coinbase Demands Clarity in SEC Regulatory Battle

SEC “catches” some cryptocurrency platforms and assets up with their operations regarded as unregistered securities offers. The SEC accused Ripple of raising over one point three billion dollars through sales of XRP token, which was an unregistered security according to the regulator’s complaint filed last December. 

However, Judge Analisa Torres has now ruled that some “programmatic sales” of Ripple (XRP) do not fall within the Securities Transaction definition thus creating a new meaning that Ripple intends to exploit to weaken extensive claims made against it by the SEC.

Coinbase is facing parallel regulatory scrutiny. This assertion by the SEC that it operated as an unregistered securities exchange, a claim Coinbase denies, necessitates a formal rulemaking process to clarify these regulatory boundaries. In this regard, both Ripple and Coinbase advocate for a more organized and transparent regulation by referencing recent court outcomes like the Binance case, which was variously referred to as inefficient and unclear.

Crypto Firms Rally Around Binance Court Decision

In its lawsuit with the SEC, Binance achieved a partial victory that could impact other crypto firms. Judge Amy Berman Jackson upheld most charges but dismissed one concerning Binance Coin (BNB) as securities, allowing the case to continue. Coinbase and Ripple have singled out this element of the judgment in their ongoing litigations.

We are waiting for more developments because the SEC is scheduled to hold a conference with Binance on July 9th. Meanwhile, Coinbase and Ripple insist on clearly defined regulations for industry stability and growth.