Ripple’s Binance-Based Defense Dismissed by SEC

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

In a new filing, the U.S. SEC has dismissed Ripple’s reference to the Binance decision as irrelevant to the ongoing remedies motion. The SEC’s response, shared by defense lawyer James K. Filan, emphasizes that Ripple’s reliance on a single observation from the 90-page Binance ruling to argue against harsh penalties is unwarranted.

SEC’s Arguments

The SEC contends that Ripple’s attempt to use the Binance decision to shape its litigation strategies lacks merit. Furthermore, the agency argues that the Binance ruling does not address Ripple’s conduct or the penalties for its alleged securities law violations. The SEC also claims Ripple omitted a significant portion of the Binance decision that could affect the remedies decision.

Related article: Ripple v SEC: Can They Reach a Settlement This Summer? 

Specifically, the SEC points out that the court rejected Binance’s fair notice argument, finding that the defendants were fully aware of potential regulatory risks. The SEC draws a parallel to Ripple, asserting that Ripple had specific notice about the risks of its actions based on counsel’s advice but chose to proceed anyway. Consequently, the SEC deems Ripple’s attempt to leverage the Binance decision to argue against harsh penalties as irrelevant.

XRP Community Reactions

Ripple’s supplemental authority has sparked reactions among XRP enthusiasts. Prominent community member Ashley Prosper questioned the SEC’s rationale for dedicating a paragraph to the fair notice doctrine when Ripple did not mention it in its notice. Prosper argues that it lacked fair notice as it was the first target of an SEC lawsuit. 

He also criticizes the SEC for its recent legal setbacks following Judge Torres’ Ripple summary judgment. Prosper urges Judge Analisa Torres to consider Ripple’s supplemental authority and strengthen her ruling against potential SEC appeals. 

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

Meanwhile, Ripple claims that the Binance judge, like Judge Torres, ruled that secondary market sales of BNB are not investment contracts. Ripple also highlights that the Binance judge criticized the SEC’s unclear regulation strategy, which supports its argument against harsh penalties.

As both parties await the court’s final judgment, the SEC maintains that Ripple’s use of the Binance decision is irrelevant, while Ripple continues to argue that it supports its stance against severe penalties.

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.

Share this :