Legal
XRP stakeholders comment on the SEC crackdown on exchanges, asserting that the recent developments suggest an end to the Ripple case.
Crypto community experts have been discussing recent events in the industry, especially the SEC’s decision to sue the world’s two biggest cryptocurrency exchanges: Binance and Coinbase.
For context, the SEC sued Binance and Coinbase in less than 24 hours, alleging that both exchanges facilitated the trading of crypto assets labeled as securities, thus violating federal securities law.
The move has sparked debate among crypto enthusiasts. In a series of tweets, top cryptocurrency experts assert that the regulator’s crackdown is related to the commission’s case against California-based tech company Ripple.
Founder of Dizer Capital, Yassin Mobarak, said the SEC’s attack on the two largest crypto exchanges shows that the regulator is scared of losing the Ripple lawsuit. He noted that a loss for the SEC in the Ripple case could give birth to a precedent-setting ruling against the commission.
This mad full frontal attack by the SEC on the two largest exchanges in Crypto (Binance and Coinbase) may indicate that they are worried about a precedent setting ruling against them in the Ripple case. So this is their attempt to thwart that damage by expediting their main…
— Yassin Mobarak (@Dizer_YM) June 6, 2023
According to Mobarak, the suit against Binance and Coinbase is the SEC’s way of expediting its main attack to isolate its possible loss against Ripple. This way, the SEC can argue that its loss against Ripple is limited to the circumstances surrounding the XRP case and not applicable to the entire industry.
Interestingly, prominent cryptocurrency journalist Zach Rector speculated that the SEC is about to settle with Ripple. Rector did not share further details about the potential settlement. However, his remark comes an hour after the SEC officially sued Coinbase.
Ripple is about to settle. 100%
— Zach Rector (@ZachRector7) June 6, 2023
Experts Say Ripple vs. SEC Case Is Over
Furthermore, another crypto proponent with the pseudonym “BABA” said the SEC’s recent crackdown on exchanges suggests that the Ripple lawsuit has been concluded.
The crypto enthusiast noted that the SEC would not have proceeded with its lawsuit against Binance and Coinbase if its case with Ripple was not over.
Wrong
The lawsuit is over.
If the Ripple case with the SEC wasn’t over
These announcements wouldn’t be happeningThey’re happening because Ripple has decided to give the SEC a win win for everyone.
Brad listened to me and decided to let it all BURN baby https://t.co/SZN5P5nQpJ
— BABA 🏴☠️ (@BabaCugs) June 6, 2023
Speaking on the recent turn of events, Ashley Prosper, an XRP community member, asserted that the SEC’s decision to go after Binance and Coinbase does not in any way suggest that Ripple lost at summary judgment.
He stressed that the regulator would have still sued the exchanges irrespective of what happened in the Ripple lawsuit. In addition, Prosper said if Judge Analisa Torres had already issued a summary judgment decision in favor of the SEC, the commission would have referenced part of the ruling in its cases against Binance and Coinbase.
“IMO, the Ripple case is over, and now the SEC needs to go full steam ahead to get Gary [Gensler] a clear win before 2024. I believe that win will be with bye-bye Binance, and Coinbase will be just fined,” Prosper added.
It is worth noting that Judge Torres has yet to issue a summary judgment decision for the Ripple lawsuit. The ruling is expected to come at any moment. However, some XRP enthusiasts believe the parties may likely settle before Judge Torres issues a verdict.
