The lawyers in the field of cryptocurrency informed Cointelegraph that the judges in charge of the legal proceedings against Coinbase and Binance will likely observe the outcome of the SEC v Ripple case with keen attention.
Since December 2020, Ripple has been engaged in a legal dispute with the US Securities and Exchange Commission, with the agency claiming that Ripple had been offering unregistered securities through XRP (XRP) since 2013.
On June 6, the SEC lodged a legal action against Coinbase, claiming that it had been providing unregistered securities. The day before, it had brought a similar case against Binance.
Lawyer James Murphy, who is known as “MetaLawMan” on Twitter, tweeted on June 9 that a positive result for Ripple could potentially weaken the grounds of the SEC’s case against both Coinbase and Binance.
However, he cautioned that a decision by Judge Torres in the Ripple case would not be considered a binding precedent for the recent filings, so people should not get overly enthusiastic.
The judges assigned to the Coinbase and Binance lawsuit are not obligated to reach the same verdict, as only the rulings from the Court of Appeals and Supreme Court are binding.
John Deaton, a lawyer who is pro-XRP, informed Cointelegraph that he believes the SEC is cognizant that Judge Torres’ ruling in the Ripple matter will be made public soon.
Deaton opines that the SEC deliberately filed these fresh cases prior to the outcome, in the event that the regulator is confronted with an unfavorable result in the Ripple case, expressing:
Murphy believes Judge Reardon, who is assigned to the Coinbase case, will be very meticulous in deciding whether XRP is a security or not, as they both work in the same court located in lower Manhattan.
He believes that Reardon would use the same logic to decide if the 13 tokens listed in the Coinbase complaint are securities, and that this could be advantageous for the SEC either way.
Bill Morgan, a lawyer who is friendly towards XRP and a consultant at Morgan Mac Lawyers, also suggested that the Ripple case may have an impact on the Binance and Coinbase cases.
Morgan stated that depending on the outcome of the Ripple lawsuit, it could be either beneficial or detrimental to the industry or the SEC.
A pro-XRP attorney’s phone was hacked to promote the LAW token.
Deaton stated that he had foreseen as early as 2022 that the SEC would take legal action against Coinbase and Binance, based on how the SEC was proceeding with the Ripple and XRP case.
He is of the opinion that the SEC will reduce its enforcement against crypto businesses as soon as the major financial institutions take a larger stake in the crypto industry.
He declared that when JPMorgan, Goldman Sachs, or other traditional players acquire a greater portion of the crypto market, the SEC will become more accommodating.
John Deaton, a lawyer who is pro-XRP, is “10x more into BTC, 4x more into ETH”: according to the Hall of Flame Magazine.
Subscribe to our email newsletter to get the latest posts delivered right to your email.