Binance Aims to Benefit from Ripple’s Legal Victory Against SEC
Binance, the leading cryptocurrency exchange, is leveraging Ripple’s recent win in court to bolster its own case against the U.S. Securities and Exchange Commission (SEC). In an attempt to have their case dismissed, Binance is using the legal precedent set by Ripple’s victory. The court ruled that Ripple’s XRP sales on secondary markets did not qualify as securities transactions.
Ripple’s Triumph: A New Defense Blueprint
In a recent court filing, Binance highlighted Ripple’s success in court and emphasized Judge Torres’ ruling. According to Binance, this ruling is the only instance that mirrors the transactions on Binance’s U.S. platform. The significant conclusion from the Ripple case was that XRP sales in secondary markets, including blind bid or ask trades, were not investment contracts.
A Question of Precedence
By challenging the charges, Binance argues that the SEC’s comparison to previous initial coin offerings (ICOs) is invalid. They point out that there have been several cases where courts have not determined whether tokens sold by traders were securities transactions.
Binance asserts that cryptocurrency trades on its platform should not be classified as securities transactions by the SEC, using the outcome of the Ripple case to support their argument. They claim that there was no defining relationship between trading parties that would transform a simple digital asset sale into an investment contract sale.
Hot Take: Binance’s Battle for Favorable Outcome
Binance’s move to challenge the SEC demonstrates how significant court rulings can shape subsequent legal battles in the cryptocurrency industry. With Ripple’s recent victory serving as a precedent, all eyes are on this case to see if Binance can achieve a favorable outcome.
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