What You Need to Know SEC to Utilize Ripple Lawsuit as Evidence in Binance Lawsuit

The ongoing battle between the U.S. Securities and Exchange Commission (SEC) and Binance is far from over. In fact, the SEC is now using the Ripple XRP case to strengthen its lawsuit against Binance, Binance.US, and former CEO Changpeng Zhao.

The SEC is strategically including the Ripple class action as additional support in its case against Binance. This indicates that the SEC views the legal findings of the Ripple case as crucial in its arguments against Binance. The Binance lawsuit is approaching resolution, with various motions, including a joint request to dismiss the complaint, currently being considered by the court.

Judge Hamilton recently ruled in favor of Ripple on several securities violation allegations, dismissing a significant portion of the plaintiff’s claims. However, Ripple CEO Brad Garlinghouse still faces trial for allegedly making misleading statements about XRP sales. Garlinghouse remains confident that he will be able to clarify the issue during the trial.

The SEC is highlighting the fact that Judge Hamilton’s ruling contradicts its previous ruling, particularly the finding that XRP programmatic sales are not securities. The SEC points out that “programmatic buyers may have purchased XRP with the expectation of profits derived from Ripple’s efforts,” which has sparked debate within the XRP community.

The SEC plans to strategically use Judge Hamilton’s opinion and Garlinghouse’s statements to influence the Second Circuit’s upcoming decision on whether XRP sales should be considered securities. This strategic approach reflects the heightened scrutiny faced by the cryptocurrency sector. The outcomes of these cases could potentially reshape regulations and have a significant impact on major cryptocurrency exchanges and assets.

With another potential landmark ruling on the horizon, the crypto market is anxiously following the SEC vs Binance case.