Prominent crypto influencer Wendy O said in a recent video that blockchain companies are now relying on the court’s decision in Ripple’s case to fight the U.S. Securities and Exchange Commission. According to her, crypto exchange Binance and live streaming platform Library Credit have relied on the decision in their cases against the SEC.
Blockchain companies are relying on the court’s decision in Ripple’s case against the U.S. Securities and Exchange Commission to win their cases, according to prominent crypto influencer Wendy O.
The influencer said Ripple is one of the companies in the crypto ecosystem to pit a full fight against the regulator. Furthermore, she accused the regulator of witch-hunting a lot of crypto companies without providing clear guidance on crypto assets.
The SEC’s action against Library Credit was what led to the bankruptcy of the platform, said Wendy O. According to her, the platform couldn’t fight back because it was still a small player in the industry.
However, following the decision of Judge Analisa Torres in Ripple vs. the SEC, Library Credit plans to appeal its lawsuit with the SEC. Like most other cases, the SEC had accused the platform of offering unregistered securities to customers in the U.S.
Likewise, she mentioned that Binance has also taken a similar route in asking the court to dismiss the SEC’s lawsuit against it. Per a recent filing, the company is relying on Judge Torres’ ruling on what kind of sale constitutes an investment contract to fight the regulator.
The decision in Ripple’s case has offered clarity on what token offerings qualify as securities, Wendy said in the video. The judge ruled that programmatic and blind bid sales of XRP tokens do not satisfy the Howey investment test. Pending the outcome of the SEC’s appeal against the decision, she said the ruling remains the law on what qualifies as securities.