Why Ripple (XRP) Wasn’t Shown as a Securities in Binance Litigation?

The U.S. Securities and Exchange Commission (SEC) is the world’s largest company for allegedly selling unregistered securities to U.S. investors. cryptocurrency exchange filed a lawsuit against Binance and its CEO, Changpeng Zhao.

The SEC claimed that the 10 altcoins listed on Binance are securities under US law and that Binance did not register them or seek an exemption. The altcoins in question Solana (LEFT), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS) And Coti (COTI).

Why Ripple (XRP) Wasn’t Mentioned in Binance Litigation

However, one notable shortcoming in the SEC’s lawsuit is that the SEC has been facing a similar lawsuit since December 2020. Ripple (XRP) it happened.

Why did the SEC exclude XRP in its lawsuit against Binance? Eleanor Terrett, a cryptocurrency journalist, shared some possible reasons she got from her legal sources:

• The SEC wants to avoid inconsistent decisions. If the SEC sues Binance over XRP, it could contradict its own arguments in the Ripple case or confuse the courts.
• XRP is currently being sued and referenced in other lawsuits. The SEC may not want to complicate the ongoing litigation with Ripple and other parties by adding XRP to the Binance litigation and causing potential research issues.
• If Ripple wins, the SEC’s lawsuit against Binance will weaken. The SEC may not want to risk losing credibility and public support for XRP by suing Binance if Ripple wins in its case and proves that XRP is not a security.

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

*Not investment advice.