The Ongoing Legal Battle
The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) continues to heat up, with Ripple referencing the partial win of crypto exchange Binance. Ripple, along with other cryptocurrency-based firms, including Binance, argues that the regulatory landscape for digital assets lacks clarity and consistency.
Ripple Leverages Binance’s Victory
Ripple Labs is taking advantage of Binance’s recent victory in its lawsuit against the SEC. This event has infused optimism among XRP enthusiasts as Ripple seeks to challenge the SEC and secure another significant win.
In the latest court filings, Ripple referenced Judge Amy Berman Jackson’s ruling in favor of Binance. Judge Amy Berman, flagging the SEC’s claims, asserted that the secondary market sales of BNB don’t constitute securities. Using Binance’s win, Ripple highlighted Judge Amy’s verdict that digital assets like XRP may not perfectly fit within the framework of existing securities laws, such as the Howey Test.
Call for Regulatory Clarity
Crypto firms that have passed through the SEC’s gauntlet, including Ripple and cryptocurrency exchange Binance, continue to reprehend the lack of clear digital asset regulations. They argue that the SEC’s existing strategy, relying on litigation on a case-by-case basis, is incompetent and creates uncertainty for the industry.
Coinbase Takes Cue from Ripple
Coinbase has also come out strongly to support Ripple’s laments. Coinbase argues that the SEC’s use of unclear guidelines in this case lacks definition, and traditional security laws being applied to digital assets lack definition. Coinbase decisively calls for a clearer and more precise regulatory framework.
To the same degree as Ripple, Coinbase is using Binance’s win to demonstrate how the SEC unfairly targets some firms and not others.
Impact on XRP’s Price
The recent case between Ripple and the SEC has substantially affected XRP’s price. Recent developments in the case, including the outcome of SEC vs. Binance, where Judge Amy Berman Jackson rejected SEC’s claims on Binance’s BNB token, have driven buyer demand for XRP.
Currently, XRP is exchanging hands for $0.4727, marking a 0.61% price surge in the last week. While the short-term price movement is a product of technical indicators, a ruling favoring Ripple could significantly surge its price.
Future Implications
As the legal battle continues, Ripple’s reference to Binance’s win against the SEC emphasizes the need for regulatory clarity and consistency, a collective thought held by many.
Once the case is concluded, experts anticipate an XRP ETF could be approved. Additionally, the fintech company has suggested that it could seek a public offering.
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