Coinbase and Ripple Labs are looking to capitalize on a judge’s ruling on how to handle secondary crypto sales in the SEC-Binance lawsuit for their own use. their ongoing lawsuit with the U.S. Securities and Exchange Commission.
Over the past few days, Coinbase and Ripple have pointed out the lack of clarity on how cryptocurrencies are regulated in filings in their respective cases.
“Binance continues to support the SEC’s involvement in the regulation of digital assets,” Coinbase said in the filing. submit court on Tuesday. The exchange said the SEC’s current approach is unclear and overly aggressive, could impose counterproductive regulations, and cause significant disruption to the digital asset industry. Coinbase wants the SEC to clarify its position through a transparent and structured rulemaking process rather than through what it says are arbitrary enforcement actions.
The incident occurred when Judge Amy Berman Jackson of the District Court of Columbia has dismissed several charges brought by the Securities and Exchange Commission (SEC) against Binance Holdings Limited and its founder Changpeng Zhao (CZ). The dismissed charges relate to the secondary market sale of BNB and the Simple Earn program. However, other charges, related to Binance’s initial token offering and ongoing sales, will remain.
Despite Judge Jackson’s ruling to proceed with most of the SEC’s complaints, legal experts in the crypto industry celebrated the dismissal of the secondary BNB sales allegations and said the order creates the general impression that crypto judgments should be made on a case-by-case basis.
Judge Jackson’s opinion “exacerbates the confusion the SEC has caused the industry,” Coinbase said in a filing with the Court of Appeals on Tuesday. Binance’s opinion confirms that the court should direct the SEC to begin issuing regulations, Coinbase added. The court is considering a lawsuit filed by Coinbase in April 2023, in which the exchange is trying to ask the agency to issue clear regulations for the crypto industry.
Coinbase has post a similar filing on Monday, using Binance’s injunction in a lawsuit against the SEC for allegedly operating as an unregistered exchange.
“This highlights the urgent need for appellate review to clarify the application of securities laws and regulations to cryptocurrency market participants.”
Ripple Labs also filed for “supplemental jurisdiction” on Tuesday, citing Judge Jackson’s position that cryptocurrencies do not “fully conform” to the Howey Test and that deciding on oversight of the crypto industry on a case-by-case basis “is probably not an efficient way.”
“This comment supports Ripple’s argument that clarifying the legality of different types of XRP sales is the most important aspect of the Court’s summary judgment decision.”
The SEC and Ripple have been battling in court for years after regulators accused the company of raising $1.3 billion through the sale of XRP as an unregistered security. Last year, New York District Judge Analisa Torres has ruled that some of Ripple’s programmatic sales of XRP did not violate securities laws because of the blind auction process. However, other direct token sales to institutional investors were securities.
Itadori
According to The Block
