- Journalist Eleanor Terrett tweeted about SEC’s non-classification of $XRP as a security token in Binance lawsuit.
- Potential reasons identified: SEC aims for consistent decisions, avoids discovery complexities, and weakens its case against Binance.
- Bitfinexed speculates on Binance’s future regarding wash trading, suggesting declining volumes.
In a recent tweet, Fox Business journalist Eleanor Terrett raised some intriguing questions about the lawsuit involving Binance and the Securities and Exchange Commission (SEC). She pondered why the SEC did not categorize $XRP as a security token in the case, drawing insights from her legal sources.
Terrett presented several potential explanations for this decision. Firstly, the SEC may be striving to avoid inconsistent rulings and the associated risks. By refraining from designating XRP as a security token, the regulatory body might be aiming to maintain a consistent approach in its decisions.
Secondly, according to Terrett, XRP is already subject to litigation and is being referenced in other lawsuits. Consequently, incorporating XRP into the ongoing Binance dispute could introduce additional complexities related to discovery. To prevent such complications, the SEC may have opted to exclude XRP from this specific case.
Lastly, Terrett suggested a strategic perspective. If Ripple, the company associated with XRP, were to emerge victorious in its legal battles, it could potentially weaken the SEC’s case against Binance. This weakening effect would impact not only the SEC’s credibility in the eyes of the public but also in the eyes of Congress and the press.
In response, Bitfinexed shared an intriguing perspective, speculating about the future actions of Binance regarding the wash trading of cryptocurrencies. The tweet suggests that it will be fascinating to observe whether Binance persists in engaging in wash trading with low-value cryptocurrencies.
According to the tweet, if Binance were to cease such practices, it could result in a significant decline in its trading volumes. Consequently, the tweet highlights that pumping and dumping schemes would become more challenging for the exchange. This becomes even more critical if users begin to leave the platform. As a potential solution, Bitfinexed proposes that Binance may need to establish a new exchange or consider acquiring an existing one.
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Source: https://coinedition.com/journalist-raises-questions-over-secs-handling-of-xrp-in-binance-lawsuit/