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<p class="is-style-lead">The SEC&#8217;s arguments against Coinbase and most of Binance&#8217;s litigation would be severely weakened if Judge Torres ruled that <a href="https://crypto.news/price/xrp/">XRP</a> tokens purchased on secondary marketplaces are not securities, according to lawyer James Murphy.</p>



<p>The SEC claims that Coinbase is acting as an unregistered securities exchange, broker-dealer, and clearing broker because 13 tokens exchanged on the platform constitute securities. However, the SEC&#8217;s case against Coinbase would fall apart if these 13 coins were not considered securities.</p>



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<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">2/ In the <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@Coinbase</a> case, the SEC claims that 13  tokens traded on Coinbase are securities, <br><br>so Coinbase is illegally operating an unregistered securities exchange, broker-dealer and clearing broker.<br><br>But, if those 13 tokens are judged Not to be securities, the SEC has no case.</p>&mdash; MetaLawMan (@MetaLawMan) <a href="https://twitter.com/MetaLawMan/status/1666864201376071694?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 8, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>Although a decision by Judge Torres would not set a precedent for future cases, it is worth noting that the judge presiding over the Coinbase case, Judge Rearden, has been on the bench for the last six months.</p>



<p>The fact that the same lower Manhattan court employs both Judge Rearden and Judge Torres makes it likely that they will give considerable weight to each other&#8217;s legal reasoning when determining whether or not XRP is a security.</p>




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<p>This interaction is mutually beneficial. The SEC would celebrate a victory and use the ruling as compelling reasoning with the courts reviewing the Coinbase and Binance cases if Judge Torres ruled that XRP coins sold on secondary markets are securities.</p>



<p>Nonetheless, since <a href="https://crypto.news/learn/beginners-guide-trading-binance/">Binance</a> launched its cryptocurrency (<a href="https://crypto.news/price/bnb/" data-type="URL" data-id="https://crypto.news/price/bnb/">BNB</a>), the situation there has been more nuanced than with Coinbase. Binance, therefore, anticipates a ruling from Judge Torres that XRP sales and issuance by Ripple do not constitute securities offerings.</p>



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<iframe title="What Happens if Ripple Loses the SEC Lawsuit &amp; XRP Becomes a Security?" width="1020" height="574" src="https://www.youtube.com/embed/MTw14m7cOIE?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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<p>Even if Judge Rearden determines that the 13 mentioned tokens are not securities, the SEC might still claim that &#8220;staking-as-a-service&#8221; constitutes a securities offering in the Coinbase case. Still, the SEC&#8217;s case as a whole would be severely undermined.</p>



<p>It&#8217;s crucial to recognize that even on the same court, judges might have different opinions. However, Judge Rearden&#8217;s short tenure makes it improbable that she would disagree with the legal reasoning of a more seasoned colleague in a matter of this significance, according to MetaLawMan’s opinion.</p>




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        Read more:

        <a href="https://crypto.news/ripple-defense-attorney-files-motion-to-withdraw-from-sec-case/">
            Ripple defense attorney files motion to withdraw from SEC case        </a>
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Ripple losing SEC case can affect Coinbase and Binance, lawyer says

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