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Recently, Coinbase and Ripple pointed to a lack of clarity on how crypto is regulated in filings submitted in their respective cases. Both firms point to a ruling by judges in the SECs case against Binance last week, which rejected the SECs claim that secondary sales of BNB were securities.

Coinbase and Ripple Labs are looking to strengthen their case with the US SEC by citing a recent ruling that gives Binance a win on how secondary crypto sales are handled. In recent days, Coinbase and Ripple have pointed to a lack of clarity on how crypto is regulated in the filings submitted in their respective cases. In this context, Coinbase highlighted the following points in a court filing on Tuesday:

Binance is more supportive of the SEC engaging in rulemaking on digital assets. As Coinbase explained, rulemaking is necessary here because the SEC has adopted a new and comprehensive, but still vague, view of the securities laws. Its view, which it has never consistently explained, is one that it has sought to retroactively impose on the digital asset industry.

US District Court Judge Amy Berman Jackson largely denied Binances motion to dismiss its case with the SEC. However, she also rejected the SECs claim that BNBs secondary sales were securities. Legal experts in the crypto sector celebrated the dismissal of the secondary sales charge as a positive outcome. However, they emphasized that crypto-related decisions should be made on a case-by-case basis.

In response to Judge Jacksons opinion, Coinbase appealed to the Third Circuit Court of Appeals, stating that the SEC contributed to the confusion it caused and urged the court to direct the SEC to begin rulemaking. Coinbase is currently involved in a lawsuit filed on April 2023, seeking a yes or no answer from the SEC on its petition for rulemaking in the crypto industry. Coinbase cited the Binance decision in a similar filing against the SEC, claiming the agency was operating as an unregistered exchange.

As you followed from Kriptokoin.com, the SEC accused Ripple of raising $1.3 billion through the sale of XRP, claiming that it was an unregistered security. A judge previously ruled that some of Ripples programmed sales did not violate securities laws. However, he considered other direct token sales as securities. The legal battle between Ripple and the SEC has been going on for years.

Ripple Labs has filed for a supplemental authorization in the ongoing legal battle with the US SEC. The company cited a recent statement by Judge Jackson, who stated that cryptocurrencies do not fully comply with the Howey opinion often used by the SEC to determine whether an asset is a security. Ripple argues that clarity on the legality of different types of XRP sales was crucial to the courts summary judgment ruling. In its application, Ripple makes the following point:

This observation supports Ripples argument that providing clarity on the legality of different types of XRP sales is the most important aspect of the Courts summary judgment ruling.

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Link:

New Move from Ripple and Coinbase: They Cited Binance as an Example! - Kriptokoin.com