It’s widespread now that Binance, the world’s largest crypto exchange, is facing a similar lawsuit to that of Ripple in the United States. Ripple has been battling with its own since December 2020.
How long it would take Binance and its CEO, Changpeng Zhao (CZ), to defend themselves can yet be ascertained. But the major question in people’s minds is the reason why the securities watchdog didn’t mention XRP as a security in the Binance lawsuit.
This question was recently answered by Eleanor Terrett, a Fox Business Journalist and producer.
In a tweet on the 5th of June, she gave three important reasons.
As recently tweeted by TimesTabloid, the SEC’s complaint identifies 10 tokens it deems to be unregistered securities, which are supported by Binance in the United States. The target list includes Solana (SOL), Cardano (ADA), Polygon (MATIC), FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.
Three Reasons Why the SEC Didn’t Mention XRP in Binance Lawsuit
After legal consultations, Terrett came up with three major reasons why XRP was omitted in the long list of digital tokens deemed as securities by the SEC.
According to Terrett, the SEC avoided the inclusion of XRP to stay away from risking inconsistent decisions.
Secondly, she said XRP is being litigated in another lawsuit, making it unnecessary to include the digital asset.
Lastly, the journalist said mentioning XRP will strategically weaken the SEC’s case against Binance if Ripple eventually wins the long-standing lawsuit.
Eleanor Terrett noted:
“Some questions as to why the SEC did not name $XRP as a security token in the Binance lawsuit. According to some of my legal sources it could be one or all of a couple of reasons:
- The SEC wants to stay away from risking inconsistent decisions. 2. It’s already being litigated and referenced in other lawsuits (why inject XRP into this dispute and open up potential discovery issues?). 3. If Ripple wins, strategically it weakens the SEC’s case against Binance in the eyes of the public, Congress and the press.”
1. The SEC wants to stay away from risking inconsistent decisions.
2. It's already being…
— Eleanor Terrett (@EleanorTerrett) June 5, 2023