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- A new filing from the SEC has countered Ripples’s comparison with Binance’s latest ruling.
- The ruling on the much-awaited remedies is a focal point that might trigger XRP price growth.
The $2 billion penalty the Securities and Exchange Commission (SEC) imposed on Ripple Labs Inc. in its ongoing court case looms on the horizon. The penalty resurfaces as the SEC counters Ripple’s comparison with a Binance ruling.
SEC Counters Ripple’s Binance Argument
Defense lawyer James Filan revealed in an X post that the SEC filed a response to Ripple’s Notice of Supplemental Authority. As Crypto News Flash earlier indicated, Ripple submitted a letter to the SEC on Tuesday arguing against strict liability violations imposed by the regulator. The company compares its case with the SEC against a favorable court ruling for the Binance exchange.
This ruling rejected the SEC’s allegations that Binance Coin (BNB) constituted securities under secondary market transactions. Ripple, therefore, argues this ruling has implications for the Howey Test applied to XRP in their case with the SEC. The firm hoped this would influence the court’s decision on potential penalties, like an imposed $2 billion fine.
The SEC, however, downplayed the connection in its response, stating that it was irrelevant to the pending motion on remedies. The regulator argued the Binance ruling only addressed the efficiency of the SEC’s litigation strategy, not the specific actions of the firm. The SEC’s reply concentrated on a fair notice and avoided discussions on BNB trading on secondary markets and Ripple’s programmatic XRP sales ruling.
The SEC emphasized the fair notice doctrine and argued that Ripple was aware of potential legal issues. The regulator claims it notified the industry through a 2017 report before most of Ripple’s alleged offenses. Fair notice is a legal principle ensuring individuals are informed about potential legal actions against them. The sole purpose of this notice is to ensure claimants adequately prepare for legal actions against them.
Judge Amy Berman Jackson, presiding over the Binance case, previously referenced a ruling on Ripple’s programmatic sales of XRP, suggesting a potential disagreement with the SEC’s approach to regulations. Investors are now quite eager to see a final court decision on the Ripple case, which has been spanning close to four years. Some XRP community members believe settlement for the Ripple vs. SEC case is closer than ever.
Impact of Coinbase vs SEC Case
While the community waits for what happens next, the ongoing SEC vs. Coinbase case could also impact the Ripple case. Coinbase is appealing a court decision labeling it an unregistered securities exchange.
Additionally, Coinbase sued the SEC last month in a bid to obtain important documents, according to an earlier report from Crypto News Fash. Note that a favorable ruling for Coinbase could influence the outcome of the SEC vs. Ripple case and benefit the broader crypto market.
Meanwhile, XRP, the token associated with Ripple, has traded sideways in the past week. Within 24 hours, XRP’s value decreased by 6.8% to trade at $0.4502.
However, the trading volume increased by 61% to $1.5 billion, demonstrating potential for a comeback. Reiterating earlier Crypto News Flash reports, analysts believe XRP is on the verge of breaking the $1 price threshold.
