SEC Counters Ripple’s Binance Argument

In the ongoing legal battle between Ripple Labs Inc. and the Securities and Exchange Commission (SEC), a recent filing by the SEC has refuted Ripple’s comparison with Binance’s latest ruling. The $2 billion penalty looming over Ripple as a result of the SEC’s actions has resurfaced amidst this legal confrontation.

Defense attorney James Filan disclosed in a post that the SEC responded to Ripple’s Notice of Supplemental Authority. This response comes after Ripple contested strict liability violations imposed by the SEC, drawing parallels with a favorable court ruling in the Binance case.

The ruling in question dismissed the SEC’s claims that Binance Coin (BNB) constituted securities in secondary market transactions. Ripple argues that this ruling sets a precedent that could impact the Howey Test applied to XRP in their case against the SEC. The company hopes that this comparison will sway the court's decision on potential penalties, including the looming $2 billion fine.

However, the SEC dismissed the relevance of this connection in its response, asserting that it did not pertain to the pending motion on remedies. The SEC clarified that the Binance ruling primarily addressed the efficacy of the SEC’s litigation strategy rather than the specific actions of the firms involved. The regulator focused on the fair notice doctrine, avoiding detailed discussions on BNB trading in secondary markets and Ripple’s programmatic sales of XRP.

Emphasizing the fair notice principle, the SEC argued that Ripple had prior knowledge of potential legal ramifications. The regulator pointed out that it had issued a report in 2017, notifying the industry about possible legal actions before the alleged offenses by Ripple. The purpose of fair notice is to ensure that individuals are informed about potential legal actions against them, allowing them to prepare adequately.

Judge Amy Berman Jackson, overseeing the Binance case, noted a ruling on Ripple’s programmatic XRP sales, hinting at a divergence in perspectives with the SEC regarding regulatory approaches. Investors are eagerly awaiting a final verdict in the prolonged Ripple vs. SEC case, with some believing that a settlement could be on the horizon.

Impact of Coinbase vs SEC Case

As the community anticipates the unfolding events, the SEC's ongoing case against Coinbase could also have repercussions on the Ripple case. Coinbase, challenging a court ruling that classified it as an unregistered securities exchange, is appealing the decision.

Furthermore, Coinbase initiated legal action against the SEC in an attempt to secure crucial documents, as reported by Crypto News Flash. A favorable outcome for Coinbase in its legal battles may influence the outcome of the SEC vs. Ripple case and could have positive implications for the wider cryptocurrency market.

Meanwhile, XRP's trading activity has remained stagnant in recent times. The token’s value experienced a 6.8% drop within 24 hours, reaching $0.4502. Despite this decline, the trading volume surged by 61% to $1.5 billion, suggesting the potential for a recovery. Analysts, in line with previous reports from Crypto News Flash, predict that XRP is on the cusp of surpassing the $1 mark.