The omission of Ripple’s affiliated token, XRP, from the U.S. Securities and Exchange Commission’s (SEC) list of unregistered securities in the recent lawsuit against Binance, the leading cryptocurrency exchange, has sparked interest among crypto enthusiasts and legal professionals.
Eleanor Terrett, a prominent journalist from Fox Business, shared her thoughts on Twitter, stating that legal sources have provided her with possible explanations. According to her sources, there are a couple of reasons that could account for this notable absence.
Firstly, it is suggested that the SEC might want to avoid risking inconsistent decisions. By not including XRP in the Binance lawsuit, the SEC may be taking a cautious approach to maintaining a consistent stance in their legal actions.
Secondly, the SEC could refrain from involving XRP to prevent potential discovery issues and complications arising from intertwining lawsuits. If XRP were to be injected into the Binance dispute, it could open up a complex web of legal implications.
Lastly, there is a strategic consideration that weakening the SEC’s case against Binance, should Ripple emerge victorious in its own lawsuit, could potentially undermine the SEC’s credibility in the eyes of the public, Congress, and the press.
Community Speculations: XRP’s Exclusion & Binance-US Listing
Members of the cryptocurrency community have also chimed in with their own speculations. One Twitter user questioned whether XRP’s absence is due to its exclusion from the listings on Binance US.
In response, Terrett clarified that the lawsuit is not solely directed at Binance US but also includes Binance, BAM trading, and Changpeng Zhao.
Another user suggested that perhaps the Ripple versus SEC case has already been settled, explaining the absence of XRP from the Binance lawsuit. This theory aligns with insider information from an individual claiming to be familiar with the SEC’s operations, indicating that a significant portion of their resources is currently dedicated to the Ripple case.
Handling two high-profile lawsuits simultaneously, particularly involving prominent entities like Ripple and Binance, could prove challenging for the regulatory body unless one of the cases has already reached a resolution.
Responding to Terrett’s tweet, Attorney Fred Rispoli acknowledged her contribution and provided an alternative perspective.
While he agreed that it makes sense for the SEC to avoid attacking XRP in other lawsuits, especially considering the Ripple case nearing its conclusion. Rispoli suggested that the presence of XRP in any legal battle serves as an open invitation for amici, such as John E. Deaton and others, to actively participate and present their arguments.
The exclusion of XRP from the SEC’s lawsuit against Binance has sparked a range of theories and speculations. However, as the legal landscape surrounding cryptocurrencies continues to evolve, it remains to be seen how these events will shape the regulatory approach and the outcome of ongoing cases.
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