• The SEC has filed lawsuits against Coinbase and Binance for allegedly offering unregistered securities.
• Crypto lawyers believe that the outcome of the Ripple case may influence the two latest crypto exchange lawsuits.
• The judges in these cases will likely pay close attention to the XRP ruling as it could undermine the entire basis for these cases.
The SEC’s Latest Lawsuits
The United States Securities and Exchange Commission (SEC) recently filed two separate lawsuits against Coinbase and Binance alleging that they have been offering unregistered securities. This is a serious allegation, as it could result in major consequences for both exchanges if found guilty.
How Will Ripple Case Affect These Lawsuits?
Ripple has been in a legal battle with the SEC since December 2020, with the regulator alleging that Ripple offered unregistered securities via XRP XRP $0.49 since 2013. Lawyers have suggested that how Judge Torres rules on this case could influence how these recent lawsuits turn out, as a favorable outcome for Ripple could “undermine the entire basis” of both Coinbase and Binance’s cases.
Will Judge Torres’ Ruling be Binding Precedent?
Lawyer James Murphy warned that any ruling by Judge Torres would not be binding precedent, meaning that judges presiding over these new cases do not have to rule in the same way as him. However, he also noted that they are likely to pay close attention to what transpires in this case regardless of its binding status.
Why Did The SEC File Cases Before Ripple Ruling?
Pro-XRP lawyer John Deaton believes that the SEC purposefully filed these new cases ahead of Judge Torres’ decision in order to maintain their “political and legal momentum” should it face an unfavorable outcome in the Ripple case. He believes this was done so they can still press forward with their other allegations even if they fail to win this particular lawsuit against Ripple.
Conclusion
Whether XRP is ruled as a security or not will certainly have an influence on both Coinbase and Binance’s lawsuit with regards to being charged with offering unregistered securities via XRP tokens trading on secondary markets. While any ruling by Judge Torres won’t be binding precedent, judges assigned to these cases will likely take note of what happens when he makes his judgement – which is expected soon – as it could potentially undermine much of their respective cases altogether .