Coinbase is celebrating a huge legal win thanks to Judge Jackson’s recent ruling in the SEC v. Binance case. This decision backs an earlier ruling by Judge Analisa Torres in the SEC v. Ripple Labs case. 
Judge Torres established that secondary sales of XRP were not unregistered securities because XRP didn’t meet the SEC’s criteria for an investment contract. 
<figure id="attachment_550492" aria-describedby="caption-attachment-550492" style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" class="wp-image-550492 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-03-at-22.04.51.jpg" alt="Coinbase rides high on precedent in Binance-SEC ruling" width="1487" height="1296" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-03-at-22.04.51.jpg 1487w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-03-at-22.04.51-300x261.jpg 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-03-at-22.04.51-1200x1046.jpg 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-03-at-22.04.51-768x669.jpg 768w" sizes="(max-width: 1487px) 100vw, 1487px">
 <figcaption id="caption-attachment-550492" class="wp-caption-text">
 Source: <a href="https://www.courtlistener.com/docket/67478179/135/securities-and-exchange-commission-v-coinbase-inc/" rel="nofollow noopener" target="_blank">Coinbase</a>
 </figcaption>
</figure> 
However, she also ruled that initial sales of XRP to institutional investors did constitute securities transactions due to the way the sales were conducted, not because of the token’s characteristics. 
Judge Jackson’s decision confirms that an investment contract does not require a contractual relationship. This reasoning aligns with other district court rulings on crypto cases, such as those involving Telegram and Terraform Labs. 
The decision emphasizes the importance of the Howey test in determining the nature of crypto transactions, a key factor for Coinbase in its ongoing legal battles with the SEC. 
Coinbase sought to use the Binance ruling to support its motion for an interlocutory appeal under 28 U.S.C. § 1292(b). However, the court found no substantial ground for a difference of opinion on the legal issues at hand. 
<figure id="attachment_550504" aria-describedby="caption-attachment-550504" style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" class="wp-image-550504" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Ninth-Fake-News-Article-202007081629.webp" alt="" width="1057" height="634" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Ninth-Fake-News-Article-202007081629.webp 620w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Ninth-Fake-News-Article-202007081629-300x180.webp 300w" sizes="(max-width: 1057px) 100vw, 1057px">
 <figcaption id="caption-attachment-550504" class="wp-caption-text">
 Paul Grewal, Coinbase’s Chief Legal Officer
 </figcaption>
</figure> 
The ruling on the “contractual arrangement” issue further undermined Coinbase’s argument for an appeal, as it reinforced the correctness of the court’s earlier decisions. 
In the Binance case, the court addressed secondary sales of BNB, a crypto asset not directly related to Coinbase. The decision allowed the SEC’s claims under the Exchange Act to proceed, indicating that these assets and related programs were offered and sold as investment contracts. 
However, the court did not make a blanket determination that all secondary market crypto transactions are securities. Instead, it stressed that each transaction must be evaluated based on its specific facts and circumstances. 
The decision also pointed out that the SEC had not sufficiently pled that certain secondary sales of BNB were investment contracts. This was based on the specific facts presented in the complaint. 
<blockquote> 
 <pre>"Moreover, in concluding that the SEC had not sufficiently pled that certain secondary sales of BNB were investment contracts, the Decision made clear that this ruling was based on the particular facts pled in the complaint then before it."</pre> 
</blockquote> 
The court noted that the question of whether a secondary market transaction constitutes an investment contract under Howey depends on the details of the particular transaction. 
Reporting by Jai Hamid

Coinbase rides high on precedent in Binance-SEC ruling

Cryptopolitan_News

3 Tem 2024 tarihli diğer yazılar

INFI MultiChain Introduces Innovative ©SbSe Protocol, Announces Community-Focused ICO (3 Jul)

‘Wen spot ETH ETF?’ – Why this exec has predicted a date of July 15th

Bank of Russia Considers Legalizing Stablecoins for Cross-Border Transactions Amid Sanctions

Blocksquare’s Oceanpoint Smashes Milestone: First Marketplace Pool Sells Out in Record Time

BREAKING: Donald Trump Touts Bitcoin As Strategic Reserve Asset For The US

$TEA Memecoin Shows Record Presale, Generating $3.4M in Just 10 Minutes

Güncel kripto para haberleri için ücretsiz bültenimize abone olun!