September 21, 2023

Eleanor Terrett: "SEC deliberately delisted XRP in a lawsuit against Binance"

Article reading time:
2 minutes.

Eleanor Terrett: "SEC deliberately delisted XRP in a lawsuit against Binance"

US Securities and Exchange Commission (SEC)excluded the XRP cryptocurrency from the lawsuit against Binance on violation of the securities law, despite the fact that the agency previously considered this digital coin a security.

Eleanor Terrett, Fox JournalistBusiness, tweeted that she was surprised by the SEC's decision. The day before, on June 5, the SEC filed charges against the largest crypto exchange and its founder, Changpeng Zhao, in violation of federal securities law: mainly due to trading in ADA, BNB, BUSD, MANA, SAND, FIL, COTI, AXS, ALGO , ATOM, MATIC and SOL. Of the authors of the claim called unregistered securities.

The journalist suggested:despite previous statements in the SEC v. Ripple case that XRP is a security, the agency deliberately excluded the mention of this crypto asset. Citing information from her legal sources, Terrett gave three possible reasons.

  • First, the SEC chose to avoid potentially controversial decisions by not pre-classifying XRP as a security in the Binance case.

  • Secondly, since XRP is already under litigation in the Ripple lawsuit, and mentioning it as a security in the Binance lawsuit could lead to potential complications.

  • Finally, Terrett believes that Ripple's theoretical victory in the ongoing legal battle could weaken the SEC's position against Binance in the eyes of the public, the media, and Congress.

  • Earlier, SEC Chairman Gary Gensler spoke out
    about the promotion of cryptocurrencies and hinted that Ethereum (ETH) may face increased attention from regulators in the near future.