Binance Aims for Legal Victory Following Ripple’s Triumph in SEC Battle
In Brief
Binance leverages Ripple’s recent legal victory against the SEC, questioning the charges and the classification of crypto trades as securities.
Meanwhile, Binance.US faces SEC scrutiny and allegations of non-compliance, sparking a debate about the safety of customer assets and regulatory overreach.
Cryptocurrency exchange Binance is capitalizing on Ripple’s recent courtroom victory as it seeks to dismiss its case with the U.S. Securities and Exchange Commission (SEC). Binance aims to draw inspiration from the precedent set by Ripple’s successful defense, where the court ruled that XRP sales on secondary markets did not qualify as securities transactions.
Binance brought to light Ripple’s recent legal triumph, emphasizing the crucial ruling handed down by Judge Torres. According to Binance, the case mirrors the transactions that allegedly occurred on its U.S. platform.
The company questioned the SEC’s charges by arguing that its attempts to compare them to past initial coin offerings (ICOs) are inadequate. Binance believes that many times, courts have been undecided about whether tokens sold by traders are securities transactions.
At the core of Binance’s argument lies a critical question: should cryptocurrency trades on its platform be categorized as securities transactions by the SEC?
Binance said that, like Ripple’s case, there wasn’t a clear connection between trading parties to turn a simple digital asset sale into an investment contract sale.
The company’s recent legal move shows how important court decisions can affect future cryptocurrency cases. With Ripple’s win as a notable example, the industry is keen to see if Binance can also succeed against the SEC.
Last week, the SEC raised concerns regarding Binance.US’s compliance with federal laws and the integrity of its custody service, Ceffu. The SEC accused Binance.US of inadequate cooperation in an ongoing investigation, asserting that the exchange’s staking, clearing, and brokerage services violate federal securities laws.
Binance.US dismissed the SEC’s concerns, calling them a “futile fishing expedition,” and asserted that customer assets are safe. The exchange claims that merely providing Ceffu software for creating wallets doesn’t grant their international arm direct access to or control over customer assets. The company also accused regulators of being overly aggressive.
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About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
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Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
