SEC Dismisses Ripples Binance Defense in Recent Court Submission
SEC Responds to Ripple’s Latest Filing in Ongoing Legal Battle
In a significant development in the ongoing Ripple vs. SEC case, the Securities and Exchange Commission (SEC) has filed its response to Ripple’s latest filing. This move is part of the final stage of the case, where the SEC is countering Ripple’s references to the SEC vs. Binance case, which Ripple argued in its favor to highlight the lack of regulatory clarity and challenge the SEC’s “regulation-by-enforcement” approach.
Defense attorney James Filan shared the latest court filing in which the SEC contends that the ruling in the SEC vs. Binance case is irrelevant to the ongoing litigation against Ripple. The SEC claims that Ripple selectively cited a portion of the lengthy Binance ruling to argue that it did not act recklessly and therefore should not face severe penalties.
SEC attorney Jorge Tenreiro emphasized that Ripple omitted a crucial part of the Binance ruling, which stated that the fair notice doctrine does not protect against liability. Fair notice is a legal concept that ensures individuals are adequately informed of any claims or legal actions against them, allowing them sufficient information and opportunity to respond or defend themselves.
The ruling also highlighted that the crypto industry had been informed of regulatory expectations through the 2017 DAO report, which preceded most of Ripple’s XRP sales. The SEC reminded the court that Ripple had received legal advice about potential issues with its sales, indicating that it was aware of possible legal violations.
Ripple’s opposition to the SEC’s motion for remedies argues for a penalty not exceeding $10 million, while the SEC has suggested a staggering $2 billion penalty. Former SEC official John Reed Stark described the Binance ruling as a significant loss for the exchange.
Judge Amy Berman Jackson referenced the Programmatic Sales of XRP ruling, agreeing with the Ripple Labs court’s approach, which found the SEC’s stance inconsistent with Supreme Court directives.
The question remains whether this will be the final court filing in the SEC vs. Ripple case. The ongoing legal battle continues to capture the attention of the crypto community, with both sides presenting strong arguments and counterarguments. The outcome of this case could have far-reaching implications for the future of cryptocurrency regulation in the United States.