The cryptocurrency market is on the cusp following the SEC’s lawsuits against Binance and Coinbase. In this tense environment, crypto lawyer Bill Morgan points to three events that will take place over the next week.
Morgan highlights monumental day for crypto
XRP enthusiast and crypto lawyer Bill Morgan highlighted a monumental day for cryptocurrencies based on upcoming events. Morgan stated that Binance will respond to the SEC’s request for a temporary restraining order on June 12, with the hearing scheduled for June 13. Interestingly, the trial date, June 13, coincides with the release of the Hinman documents. It also coincides with the day when the House of Representatives Financial Services Committee will discuss the future of digital assets. Morgan describes this history as monumental to crypto.
The Binance response to the motion of the SEC for temporary restraining orders is due on 12 June and the hearing on 13 June. A monumental day for crypto. The day the Hinman documents are to be released, the day the House Financial Service Committee discusses the future of /1 pic.twitter.com/a8amTNnlVG
— bill morgan (@Belisarius2020) June 8, 2023
The XRP-savvy lawyer highlights the possibility of another significant event occurring on the aforementioned date. But memory disappoints him. This week, the SEC filed 13 charges against the Binance crypto exchange and its CEO. He also claimed that the company did not register as a stock exchange and broker-dealer. The SEC has also moved to obtain a temporary restraining order to freeze Binance.US assets. The recent actions of the SEC have sparked reactions in the crypto market. Ripple General Counsel Stuart Alderoty criticized the SEC, saying the allegations in the lawsuits were “unproven.” In this context, he made the following statement:
The allegations in these cases have yet to be proven. The SEC – contrary to what Chairman Gensler has claimed – does not have a magic regulatory wand that it can simply wave and say that tokens are securities. We look forward to seeing how the courts and Congress will address this issue.
How does the Ripple lawsuit affect the Coinbase and Binance lawsuits?
A crypto-friendly legal expert known by the alias MetaLawMan has explained how the SEC’s Ripple decision will play an important role in the commission’s lawsuit against Binance and Coinbase. The legal expert noted that risks have increased in the Ripple case, particularly in the legal battle involving the world’s two largest crypto exchanges, Binance and Coinbase.
1/ The stakes just keep getting higher for the ruling in SEC v. @Ripple.
Here's why.
If Judge Torres rules that $XRP tokens trading on secondary markets are Not Securities–it would undermine the entire basis for the SEC's case against @Coinbase and much of the @Binance case.
— MetaLawMan (@MetaLawMan) June 8, 2023
cryptocoin.com As you follow, the SEC claimed that Coinbase operates an unregistered securities exchange by facilitating the trading of at least 13 cryptoassets that it has labeled as securities. MetaLawMan said the SEC has no lawsuits if the judge decides these assets are not securities. He also clarified that Judge Torres’ decision is not a binding precedent. However, he expects Judge Jennifer H. Rearden in charge of the Coinbase case to follow Judge Torres’ legal reasoning in determining whether secondary market sales of 13 cryptos are securities.
The leading legal expert pointed out that Rearden has only been a Judge for six months, compared to Judge Torres, who has been a Judge for several years. MetaLawMan also highlighted that Judge Rearden works in the same court as Judge Torres. In this context, MetaLawMan underlined the following:
Therefore, a Torres decision on XRP will not be a ‘binding precedent’. That said, I believe Judge Rearden will pay close attention to Judge Torres’ legal justification when deciding whether XRP is a security.
The legal expert noted that if Judge Torres rules that XRP secondary market transactions are securities, the SEC will ask the Judges presiding over the Coinbase and Binance cases to follow his legal reasoning.
