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SEC Cites Zakinov Vs Ripple Among Cases In Binance Lawsuit – Crypto News

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2 years ago

January 24, 2024

Dripp

Binance Vs SEC: Plaintiff U.S. Securities and Exchange Commission (SEC) submitted a list of court cases the securities regulator considers relevant and discussed at a hearing this week, as per a minute order by the federal judge. The SEC has mentioned four court cases, including Zakinov v. Ripple Labs suit that argues XRP qualifies as a “security” under either the California or federal securities laws.

Binance Vs SEC: Ripple Case as Supplemental Authority

Judge Amy Jackson issued a minute order after a January 22 hearing, asking both the SEC and Binance to provide full citations for a few cases discussed in arguments that were not cited in its briefs. However, Judge Jackson stated that the cases may not be “further discussed or described, and no response to the other party’s submissions may be filed.”

The SEC has filed a notice of supplement authority pursuant to the minute order, as per the latest filing on January 22, 2024. The SEC attorneys cited four court cases and considered them important for a summary judgment in the Binance lawsuit. The citations are:

Owen v. Elastos Found., No. 1:19-cv-5462-GHW, 2021 WL 5868171, at *9-16
(S.D.N.Y. Dec. 9, 2021)
Patterson v. Jump Trading LLC, No. 22-cv-03600-PCP, 2024 WL 49055, at *11-12
(N.D. Cal. Jan. 4, 2024)
Houghton v. Leshner, No. 22-cv-07781-WHO, 2023 WL 6826814, at *2-5 (N.D. Cal.
Sept. 20, 2023)
Zakinov v. Ripple Labs, Inc., No. 18-cv-06753-PJH, 2020 WL 922815, at *11-12 (N.D.
Cal. Feb. 26, 2020)

Notably, the SEC has not yet provided a clear definition of the boundary for what it deems a security concerning virtual tokens. Judge Jackson stated that while the SEC claims all digital assets to be securities, “How are the issuers supposed to know when they cross the line?”

Meanwhile, defendants Binance, Binance.US, and Changpeng Zhao’s lawyers are yet to provide details on relevant court cases discussed at the hearing.

CoinGape earlier reported that the SEC earlier tried leveraging its win in the Terraform Labs lawsuit in this lawsuit, as well as in the securities violation case against Coinbase. Defendants filed a joint response to the SEC denying its relevance in the Binance lawsuit.

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