SEC Responds to Ripples Final Filing Binance Case Argument Rejected
SEC once again made waves in the Ripple vs. SEC saga! In the latest development of the case, the SEC has responded to Ripple’s recent filing. The SEC has refuted Ripple’s arguments regarding the SEC vs. Binance case, which Ripple had hoped would bolster its own defense against the SEC. Ripple had pointed to the Binance case to criticize the SEC’s enforcement approach, citing regulatory ambiguity.
Here are the key updates:
What’s New?
Defense attorney James Filan shared the latest court filing, revealing the SEC’s stance that the SEC vs. Binance ruling holds no relevance to the ongoing Ripple case. The SEC accused Ripple of selectively interpreting the Binance ruling to argue against facing severe penalties, while sidestepping discussions on Binance Coin’s secondary market transactions and the Programmatic Sales of XRP ruling.
SEC’s Fair Notice Argument
However, the SEC countered by stating that the Binance ruling does not pertain to the current dispute over penalties. SEC attorney Jorge Tenreiro emphasized that Ripple omitted crucial aspects of the Binance ruling, particularly its stance that the fair notice doctrine does not shield against liability. Fair notice ensures individuals are adequately informed of legal claims against them, giving them the chance to respond.
In the fair notice context, the ruling highlighted that the crypto industry had been informed of regulatory expectations through the 2017 DAO report, preceding most of Ripple’s XRP transactions.
Legal Insights
Furthermore, the SEC noted that Ripple had received legal counsel on potential legal issues related to its transactions, suggesting awareness of possible violations. Ripple’s opposition to the SEC’s penalty proposal advocates for a maximum penalty of $10 million, while the SEC has proposed $2 billion.
Former SEC official John Reed Stark characterized the Binance ruling as a significant setback for the exchange. Judge Amy Berman Jackson referenced the Programmatic Sales of XRP ruling, aligning with the Ripple Labs court’s view that the SEC’s stance contradicted directives from the Supreme Court.
The question remains whether this latest filing marks the conclusion of the SEC vs. Ripple case.
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Ripple (XRP)