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Ripple case more crucial than ever amid Coinbase, Binance SEC crackdown: Lawyers

The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has garnered significant attention within the cryptocurrency community. Recent insights from crypto lawyers indicate that the SEC v Ripple case results may have implications for the lawsuits involving Coinbase and Binance. In a series of tweets, lawyer James Murphy, popularly known as “MetaLawMan” on Twitter, explained that a favorable outcome for Ripple could potentially weaken the SEC’s case against Coinbase and Binance. However, it is important to note that the ruling in the Ripple case will not be a binding precedent for the other lawsuits, as only decisions from the Court of Appeals and the Supreme Court carry such influence.

The Influence of the Ripple Lawsuit:

Pro-XRP lawyer John Deaton believes that the SEC is well aware that Judge Torres’ decision in the Ripple case will soon be published. In light of a potentially unfavorable outcome, Deaton suggests that the SEC file these new cases against Coinbase and Binance to prevent any political and legal momentum loss. This strategic move by the SEC allows them to control the narrative should the Ripple case not favor them. However, it is important to remember that the ruling in the Ripple case may serve as an advantage for the industry or the SEC, depending on the outcome.

Judge Reardon’s Attention:

Given the proximity of the Ripple case and the Coinbase lawsuit, lawyer James Murphy suggests that Judge Reardon, who is assigned to the Coinbase case, will closely observe the determination of whether XRP is classified as a security. Murphy highlights that both cases are handled in the same Lower Manhattan court and speculates that Judge Reardon may follow a similar line of reasoning. The outcome of this determination will significantly impact the Coinbase complaint and could potentially influence the judgment in favor of either Coinbase or the SEC.

Implications for Binance:

Crypto-friendly lawyer Bill Morgan, a consultant at Morgan Mac Lawyers, also notes that the outcome of the Ripple lawsuit could extend its influence to the cases involving Binance and Coinbase. Morgan emphasizes that the Ripple case result can be used as an advantage by either the cryptocurrency industry or the SEC, depending on the verdict. A substantial judgment against the SEC in the Ripple case could empower Coinbase and Binance to contest the classification of XRP as an investment contract.

The SEC’s Future Actions:

John Deaton predicted the SEC’s lawsuits against Coinbase and Binance and anticipates a potential change in the SEC’s stance towards cryptocurrency firms. Deaton suggests that the SEC may adopt a more reasonable approach once major financial institutions, such as JPMorgan and Goldman Sachs, secure a larger share of the crypto market. This prediction implies that the SEC’s actions may become less aggressive as traditional players enter the crypto market.

The outcome of the SEC v Ripple case is highly anticipated, as it could have significant ramifications for the lawsuits involving Coinbase and Binance. While the Ripple case does not directly bind the rulings in these cases, judges may consider the determinations made regarding XRP’s classification. The ripple effects of the Ripple lawsuit extend beyond Ripple itself and have the potential to shape the legal landscape surrounding cryptocurrencies. As the crypto community eagerly awaits the verdict, it remains to be seen how the courts will interpret and apply the precedents set forth by the SEC v Ripple case.

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