Ripple Files New Motion in SEC Lawsuit, Cites Binance Ruling

Ripple's Binance-Based Defense Dismissed by SEC as Irrelevant

Ripple, a leading crypto payments company, has submitted a supplemental authority in its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). This new filing refers to the recent court decision in the SEC v. Binance case. In this case, the court partially denied and granted Binance’s motion to dismiss the SEC’s charges that certain digital asset sales are investment contracts.

Highlighting Binance Judge’s Reasoning

Ripple emphasized that the Binance judge followed the summary judgment reasoning in the SEC v. Ripple case, applying the decision to secondary market sales of BNB, one of the assets in question. It argued that the Binance judge acknowledged the difficulties in applying traditional securities laws to intangible digital assets. 

Related article: Ripple Transfers 200 Million XRP Following Massive June Offload 

Moreover, the court observed that the SEC’s approach of litigating the industry through individual lawsuits rather than establishing clear regulations is inefficient. Ripple contends that the lack of regulatory clarity highlighted by the Binance judge further supports its position that harsh remedies are unwarranted. Following Ripple’s supplemental authority regarding the Binance ruling, the SEC is expected to file its opposition in the coming days.

Push For a Lower Penalty

Ripple’s recent brief aims to support the company’s opposition to the SEC’s pending motion for remedies. The SEC has requested a nearly $1.95 billion fine as a potential penalty for Ripple’s alleged securities law violations. Additionally, the regulator asked the court to impose a permanent injunction on Ripple’s institutional sales of XRP. In response, Ripple argues that an injunction is unnecessary and is pushing for a penalty of not more than $10 million.

Related article: Ripple’s Legal Journey: Impactful July Decisions Ahead

This is the second time Ripple has submitted supplemental authority in the remedies litigation. Last month, the company cited the SEC v. Terra settlement to justify its plea for a reduced penalty. 

After the SEC responds to Ripple’s latest filing, the court will determine the timing of the final judgment. Notably, the final verdict could be issued at any time, with key stakeholders expecting a decision this year.

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Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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