SEC sues Binance, doesn’t mention XRP as security.

On June 5th, the United States Securities and Exchange Commission (SEC) sued Binance, the world’s largest cryptocurrency exchange, accusing them of 13 charges, including enabling the trading of unregistered securities. This move has caused the cryptocurrency markets to drop. The SEC claims that Binance allowed the trading of several crypto assets, including BNB, the platform’s native currency, Cardano’s ADA, and MATIC, the token for the Polygon ecosystem.

XRP Not A Security?

The SEC did not mention Ripple, the payment company, or the native currency of the XRP Ledger, which is the platform through which the company bases its flagship products. Ripple and the SEC have been in a legal battle since late 2020 when the regulator accused Ripple of selling an unregistered security, XRP.

Despite the mention of XRP, the coin’s price has decreased due to the market-wide collapse that has wiped billions in value from the total crypto market capitalization, according to CoinMarketCap (CMC), a coin tracker. On June 5th, the total cryptocurrency market cap had contracted by over 5% to $1.09 trillion. During this time, the XRP price has been down 7% in the past 24 hours.

• Pepecoin’s price and market cap were cut in half, fading the frenzy around the meme token.
• Binance’s Ethereum net outflows were $778M after SEC charges, according to Nansen.
• Intel shares down 4.6% after Apple announces switch to in-house chips for Mac Pro.

However, XRP has outperformed all the top-10 cryptocurrencies, including Ethereum and Bitcoin. Comparing the current performance to how XRP performed last week, the coin is the only one in the green territory, adding 3%. The failure of the SEC to mention XRP in their lawsuit could be a huge boost for the token and its ecosystem in the days and weeks ahead, especially considering the ongoing case.

Ripple Supporters Remain Bullish Despite SEC’s Accusations

The case is ongoing, but there have been rulings in recent weeks that make XRP supporters optimistic. The presiding judge has denied SEC’s motion to seal the Hinman documents. Although the SEC campaigned for these documents to remain private, claiming they were deliberative and privileged, the judge said the public had the right to know since they are relevant to the case. These documents are critical in the case as they detail internal communication by the SEC on how they classified XRP as a security. The judge has yet to make a ruling, but in March 2023, the SEC filed an amended complaint against Ripple, claiming they were engaged in market manipulation. Ripple has since filed a motion to dismiss the regulator’s amended complaint, saying they are “baseless.”

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!