Ripple Labs and Coinbase are referencing a recent court decision involving Binance to bolster their ongoing legal disputes with the SEC.
The Binance case has led to calls for improved regulatory standards from both companies, following a dismissal of the legal dispute with the SEC.
The case in question saw Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia largely denying Binance’s motion to dismiss the SEC’s lawsuit. However, she dismissed claims related to secondary sales of Balance Coin (BNB) as securities and argued that the commission should follow an American Legal Model.
Coinbase, in its appeal to the Court of Appeals for the Third Circuit, cited the Binance ruling as a foundation for its argument that the SEC should initiate rulemaking to define the regulatory perimeter for digital assets more clearly.
Likewise, Ripple Labs submitted a “supplemental authority” in their case, stressing the need to outline the legal status of various types of sales of its XRP token and referring to Judge Jackson’s remarks on the disadvantage of making successive regulatory decisions.
Coinbase is contesting claims it operated as an unregistered securities exchange, while Ripple has been involved in a multi-year lawsuit with the SEC over its sale of XRP, which the agency deems an unregistered security.
The crypto industry is keenly awaiting further developments in these cases, with a scheduling conference for the SEC’s case against Binance set for July 9. The decisions made in these cases can enhance the SEC’s position to push for transparent and consistent rules like Ripple and Coinbase.
During these legal proceedings, the demand for definite legal requirements seems to be the industry’s desire for stability within a clear legal setting.
Also Read: U.S. Judge Rejects SEC’s Main Claims Against Binance
