SEC Using Ripple Case As Legal Weapon Against Binance?

The legal case involving Binance and the US Securities and Exchange Commission ( SEC ) is heating up. The SEC is now using the Ripple case as the main reference in determining the legal status of  crypto assets . What impact will this have on the future  of crypto  in the United States? Check out the complete review that will open your eyes about this legal battle!

SEC Sues Binance: Ripple Case Becomes a Reference

The SEC has filed four court cases as additional authority in the lawsuit against Binance. One of them is the case of Zakinov v. Ripple Labs highlighting XRP's status as a “security”. This case is important because the SEC has not provided a clear definition of the limits of  crypto assets as securities.
Judge Amy Jackson asked both sides to provide complete citations of the cases discussed. The SEC emphasizes that all digital assets are considered securities, but the question is, “How can issuers know when they are crossing the line?” Meanwhile, Binance and its lawyers have still not provided details of the relevant legal case.

Ripple and Its Influence in  Crypto Legal Cases

The Ripple Labs case is echoed again in the Binance lawsuit. The SEC drew parallels between the Ripple case and the current Binance case. The decision to cite previous cases, including the lawsuit against Terraform Labs , shows the SEC's intent to uphold a strong legal basis for categorizing digital tokens as securities.
This legal battle is a critical point in determining the limits of digital asset regulation. The outcome of this case will shape the future regulatory landscape for  cryptos , setting a precedent for how they are regulated in the United States. This adds a new layer to the complex digital asset and securities legal debate.

SEC May Win Against Ripple in XRP Sales Discovery Request

The SEC has filed a response to Ripple's objection to providing audited financial reports. The SEC argued that discovery requests related to legal remedies were procedurally appropriate and not “too late.”
The SEC is seeking penalties against Ripple and wants to send a strong message that securities violations will be taken seriously. Ripple could argue that it intends to structure future ODL sales so as not to fall into the summary judgment institutional sales category.
However, the SEC stated that they should have a post-suit sales contract to test Ripple's intentions and whether it was commercially feasible for Ripple to structure the ODL sale in a compliant manner.