Sign In with Google
Sign In with Facebook
The Ripple Effect: How Its Outcome Could Impact Other Crypto Lawsuits
The verdict in Ripple's case—specifically the classification of XRP as a security—may considerably sway the proceedings of the recent lawsuits against crypto exchanges Coinbase and Binance, according to legal experts in the cryptocurrency sector.
These legal specialists suggest that the judges presiding over Coinbase and Binance's legal battles are likely to keep a keen eye on the developments and final outcome of the SEC v Ripple lawsuit.
Ripple vs SEC: A Precursor to New Lawsuits?
Ripple has been embroiled in a legal dispute with the US Securities and Exchange Commission (SEC) since December 2020. The SEC contends that Ripple has been selling unregistered securities in the form of XRP since 2013.
On June 6, the SEC launched a similar lawsuit against Coinbase, asserting that the exchange has been offering unregistered securities. This lawsuit was filed just a day after a similar allegation was leveled against Binance.
How Ripple's Verdict Could Influence Other Cases
James Murphy, a lawyer popularly known as "MetaLawMan" on Twitter, opined on June 9 that if Ripple were to win its case, it could potentially "undermine the entire basis for the SEC's case" against both Coinbase and Binance.
He did, however, caution that a verdict in favor of Ripple, as handed down by Judge Torres, would not necessarily set a "binding precedent" for these new cases. In essence, the judges presiding over the Coinbase and Binance lawsuits would "not be obligated to rule in the same manner" as Judge Torres.
The Ripple Case's Potential Influence: Legal Experts Weigh In
John Deaton, a pro-XRP lawyer, argues that the SEC is very much aware of the impending publication of Judge Torres' verdict in the Ripple case.
Murphy also posits that Judge Reardon, who is overseeing the Coinbase lawsuit, will closely follow whether XRP is deemed a security or not. They believe that Reardon would "adopt similar reasoning" to determine if the 13 tokens mentioned in the Coinbase lawsuit are securities.
Legal Consequences: For the SEC and the Crypto Industry
Meanwhile, Bill Morgan, a lawyer sympathetic to XRP and a consultant at Morgan Mac Lawyers, also believes the Ripple case could cast a long shadow over the lawsuits against Binance and Coinbase. Morgan stated that the outcome in the Ripple lawsuit could be used to the "benefit" of either the crypto industry or the SEC, depending on the verdict.
Deaton, on the other hand, suggested that he had foreseen the SEC's lawsuit against Coinbase and Binance back in 2022, based on how the SEC was handling the Ripple and XRP case.
