In legal battles between Ripple and the US Securities and Exchange Commission (SEC), the lawsuits against Coinbase and Binance are being closely watched by judges, according to crypto lawyers.
Since December 2020, Ripple has been embroiled in a legal dispute with the SEC, which accuses the company of offering unregistered securities through XRP since 2013.
Recently, on June 6, the SEC filed a lawsuit against Coinbase, also alleging the exchange of offering unregistered securities. Similarly, a day prior, the SEC filed a lawsuit against Binance, making similar claims.
Lawyer James Murphy, aka “MetaLawMan,” suggests a favorable outcome for Ripple might weaken the SEC’s case against Coinbase and Binance, but clarifies that it won’t set a binding precedent for the ongoing lawsuits.
The judges presiding over the Coinbase and Binance cases are not obligated to rule in the same manner as the Ripple case, as only decisions by the Court of Appeals and the Supreme Court hold such influence.
Pro-XRP lawyer John Deaton believes the SEC is well aware that Judge Torres’ decision in the Ripple case will be published soon.
Judge Reardon in the Coinbase case will closely observe the XRP security determination, potentially impacting the classification of the 13 tokens mentioned in the complaint.
XRP-friendly lawyer Bill Morgan, a consultant at Morgan Mac Lawyers, also believes that the outcome of the Ripple case could impact the lawsuits against Binance and Coinbase, offering an advantage to either the industry or the SEC, depending on the result.
Deaton, who had predicted the SEC’s action against Coinbase and Binance based on their approach to the Ripple and XRP case in 2022, anticipates a more lenient stance from the SEC once major financial institutions gain a larger share of the crypto market.
Also Read: Binance & Coinbase Under Fire: Is the SEC Killing Crypto?
