u.today
In a week filled with substantial legal moves by the Securities and Exchange Commission (SEC) against major players in the cryptocurrency arena, Ripple's General Counsel, Stuart Alderoty, remains defiant.
In a recent tweet, Alderoty questioned the SEC's strategy, which he described as one of 'shock and awe', maintaining his faith in the rule of law. This comes amid lawsuits filed by the SEC against renowned cryptocurrency exchanges Coinbase and Binance, accusing them of operating as unregistered national securities exchanges, among other allegations.
The SEC's allegations are wide-ranging, implicating several popular cryptocurrencies, including Cardano (ADA), Solana (SOL), and Polygon (MATIC), as unregistered securities.
This extensive list also includes Binance's BNB, the BUSD stablecoin, and a variety of other crypto assets such as FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI. The fallout has been swift, with the likes of Robinhood delisting Cardano, MATIC, and SOL due to the legal action.
In light of these developments, the Ripple case's outcome becomes even more critical. As articulated by James "MetaLawMan" Murphy on Twitter, if Judge Torres in the SEC vs Ripple case rules that XRP tokens traded on secondary markets are not securities, it could potentially undermine the entire basis for the SEC's cases against Coinbase and Binance. Of course, the reverse is also true; a ruling in favor of the SEC would bolster their case considerably.
However, several caveats exist. As MetaLawMan noted, even if Judge Torres rules in Ripple's favor, his decision will not serve as binding precedent for other cases. Still, other judges, including Judge Rearden, assigned to the Coinbase case and who has only been a judge for six months, might lean towards Judge Torres' reasoning.
Moreover, differences exist within the SEC's complaints against Coinbase and Binance, adding further complexity to the issue. Notwithstanding, whatever the initial rulings are, it's safe to anticipate years of appeals, making this a significant development to watch in the world of cryptocurrency regulation.