Marc Fagel, former official of US SEC, has recently revealed the primary reason behind SEC’s pursuit of permission to certify an interlocutory appeal in the ongoing Ripple Vs SEC lawsuit. This revelation comes after Binance’s recent motion to dismiss the SEC request to appeal, citing the Ripple ruling as a pivotal legal precedent.
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Fagel Reveals US SEC’s Broad Plan Behind the Appeal
With his extensive knowledge of securities litigation, Fagel confirmed that the SEC’s appeal was a strategic move to counteract the implications of the Ripple ruling on its broader enforcement program. He stated that the SEC could have navigated around the ruling if it only pertained to issuers of securities-related assets and tokens.
However, the ruling’s potential impact on pending litigations against crypto exchanges like Coinbase and Binance necessitated the appeal.
The SEC, sharing these concerns, argued that the court’s decision on programmatic sales could significantly affect its ongoing litigations. The court, however, is yet to decide on the SEC’s request to certify an interlocutory appeal.
Earlier, John Deaton, the founder of Crypto-Law.US, speculated that the court might deny the SEC’s request to certify its interlocutory appeal. According to Deaton, if the court denies the request, the regulator must wait until the end of next year to challenge the ruling through a full appeal.
Will Binance Benefit If Court Denies SEC’s Request?
As reported by CoinGape, Binance has submitted a memorandum of law to bolster its motion to dismiss the SEC case. The exchange lawyers emphasized the Ripple ruling to advocate dismissing the SEC’s complaint. They argued that the U.S. District Court for the Southern District of New York, which oversaw the Ripple case, concluded that Ripple’s programmatic sales of XRP were blind bid transactions and, therefore, do not qualify as investment contracts.
Binance’s argument quickly referenced the Ripple ruling to support its case. The exchange’s stance is that the ruling sets a precedent that could undermine the SEC’s broader agenda against crypto exchanges. Attorney Morgan highlighted that the SEC anticipated other crypto-related companies like Binance and Coinbase leveraging the Ripple ruling in their defense strategies.
Read more: Ripple CLO Alderoty, XRP Lawyer Deaton Accuse US SEC And Gensler
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