Following the U.S. Securities and Change Commission’s (SEC) most recent lawsuit against Binance, the largest cryptocurrency exchange in the world, and its CEO Changpeng Zhao, concerns have been raised about the noticeable omission of the XRP coin, which is linked to Ripple, from the SEC’s list of unregistered securities.
By operating unregistered securities trading platforms, marketing unregistered crypto asset securities, and engaging in dishonest business practices, according to the SEC, Binance and Zhao violated federal securities laws.
According to legal experts, a multitude of factors could explain why XRP isn’t involved in the lawsuit.
A Fox Enterprise journalist named Eleanor Terrett said on Twitter that the SEC may be attempting to avoid any potentially conflicting decisions or points of discovery connected to the ongoing action surrounding XRP.
Furthermore, the SEC’s case against Binance may be compromised in the eyes of the general public, Congress, and the media if Ripple, the company that created XRP, prevails in its current legal conflicts.
Additionally, other Twitter users pointed out that XRP isn’t listed on Binance US, which is perhaps another reason it’s not included in the case. Terrett clarified that XRP is featured on the larger Binance platform and that the case is not only against Binance US but also against Binance, BAM buying and selling, and Zhao.
A prominent anti-crypto activist named Bitfinex explained that the SEC would not be required to take that action in the first place.
A number of popular cryptocurrencies, including Cardano (ADA), Solana (SOL), Polygon (MATIC), Binance’s native BNB token, and the BUSD stablecoin, were identified by the SEC as unregistered securities in its case. It also included several crypto assets in the same class, including FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.
The lawsuit asserts that by listing for sale cryptocurrency assets that have previously been the target of SEC enforcement actions, Binance has shown a pattern of perhaps reckless disregard for securities regulations.