Last updated on May 18th, 2024 at 12:27 pm
Speculations are beginning to rise following XRP’s absence from the lawsuit filed against Binance by the SEC. Recently, the Securities and Exchange Commission filed charges against Binance, its CEO, and other related entities for 13 violations.
One of the charges claims is that Binance is offering unregistered securities. Popular cryptocurrencies like Cardano (ADA), Solana (SOL), Polygon (MATIC), Binance’s BNB token, and the BUSD stablecoin were listed as unregistered securities according to the charges.
However, Ripple-affiliated XRP was notably not listed in the lawsuit which has generated reactions and theories across the crypto community. Different experts have given several reasons why XRP wasn’t included in the list.
Community speculations
The general crypto market has been reacting to the news as it unfolds. At press time, Binance is currently a trending topic on the micro-blogging app. According to some legal experts, there could be several reasons why XRP was committed from the list.
Fox Business journalist Eleanor Terrett gave 3 reasons why the SEC didn’t include XRP in the lawsuit. One of the reasons is the fact that the SEC might be trying to stay away from “inconsistent decisions.”
She also speculated that the reason might be because XRP is already being litigated and mentioned in other lawsuits, so it will be unwise to include XRP and risk opening up discovery issues.
Finally, she also points out that if Ripple wins its case against the SEC, it might strategically weaken the case against Binance. According to her, it could be one or all of the reasons stated above.
Some questions as to why the @SECGov 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:
1. The SEC wants to stay away from risking inconsistent decisions.
2. It's already being…— Eleanor Terrett (@EleanorTerrett) June 5, 2023
In addition, a Twitter user @xspectDS pointed out that the reason for the exclusion might be because XRP is not listed on Binance.US. However, Eleanor was quick to remind the user that the case isn’t just against Binance.US, but also against Binance, BAM trading, Binance.US, and the CEO Changpeng ‘CZ’ Zhao.
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Furthermore, another user @Bitfinexed says that the SEC wouldn’t have to do it. Bitfinexed continued by speculating that stops “wash trading shitcoins,” its volume will drop.
It’s going to be interesting to see if Binance continues to wash trade shitcoins, if they stop wash trading shitcoins, their volumes will collapse.
Pumping and dumping becomes harder.
Especially if people are fleeing.
They have to create another exchange or take one over.
— Bitfinex’ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) June 6, 2023
Other cryptocurrencies listed in the lawsuit against Binance include Filecoin (FIL), Cosmos (ATOM), Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI.
According to the lawsuit, Binance has demonstrated a history of possibly reckless disregard for securities legislation by offering for trading crypto assets that have previously been the subject of SEC enforcement proceedings.
