US SEC files Ripple XRP case to obtain a ruling in its lawsuit against Binance, Binance.US, and former CEO Changpeng Zhao.
The U.S. Securities and Exchange Commission (SEC) has drawn the court’s attention to a recent judgment in the Ripple class action, utilizing the Ripple XRP case in the Binance lawsuit.
It follows a legal opinion of a California district court judge varies significantly from an SDNY judge’s decision that XRP is not a security.
SEC Files Ripple Lawsuit As Supplement Authority in Binance Suit
The U.S. Securities and Exchange Commission (SEC) has submitted a Ripple class action lawsuit in the District Court of Columbia as a supplemental authority in its most recent filing.
The SEC asserts that the argument and judge’s opinion in the Ripple litigation are relevant to the court’s ruling on the lawsuit against Binance, Binance.US, and former CEO Changpeng Zhao.
In the Binance litigation, the discovery and deposition phase is nearing its conclusion, as the parties have resolved the majority of their discovery disputes.
The lawsuit is presently seeking the court’s decision on several motions, including a joint motion to dismiss the lawsuit.
In the case of Judge Hamilton, Ripple prevailed in the Ripple Labs, Inc. Litigation, which rejected the majority of the plaintiff’s arguments regarding securities violations.
The trial on misleading statements for XRP sales by Ripple CEO Brad Garlinghouse will, however, continue.
Ripple CEO Garlinhouse in a recent post regarding misleading statements cited in the case, said “I stand by what I said and am looking forward to shedding light on that during the trial.”
He added that the sole plaintiff who owns a few hundred XRP didn’t even buy it directly from Ripple and “can’t say if he even heard the statement before he traded.”
SEC Spotlights Judge Hamilton’s Opinion on XRP Security Status
Judge Hamilton ignored the SDNY court’s decision that XRP programmatic sales are not securities, which sparked a debate within the XRP community.
The judge ruling on the third Howey test prong was objective, which also added that “programmatic buyers may have purchased XRP with the expectation of profits to be derived from Ripple’s efforts.
The SEC is also seeking the court’s attention regarding Ripple CEO’s misleading statements regarding XRP.
The primary concern for Ripple is the SEC’s use of this California case in the Second Circuit in its appeal against Judge Torres’ summary judgment on XRP.
However, the court must initially determine whether XRP sales qualify as securities.