Ripple, a leading company in the crypto payments industry, has submitted a supplemental authority in its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). This new filing is in relation to the recent court decision in the SEC v. Binance lawsuit. The court ruled on the exchange’s motion to dismiss the SEC’s charges that certain digital asset sales are investment contracts, granting in part and denying in part.
Ripple highlights that the judge in the Binance case followed the summary judgment reasoning in the SEC v. Ripple case, applying it to the secondary market sales of BNB, one of the assets in question. Ripple also argues that the Binance judge acknowledged the difficulties in applying traditional securities laws to intangible digital assets. The court recognized that the SEC’s approach of litigating the industry through individual lawsuits instead of clear regulations is inefficient.
Ripple believes that the lack of regulatory clarity noted by the Binance judge further supports its position that its actions do not warrant severe penalties. The SEC is expected to file its opposition to Ripple’s supplemental authority in the coming days.
It is worth mentioning that Ripple’s recent brief aims to support its opposition to the SEC’s pending motion for remedies. The SEC has requested a fine of nearly $1.95 billion and a permanent injunction on Ripple’s institutional sales of XRP for its securities law violations. In response, Ripple argues that an injunction is unnecessary and seeks a penalty of no more than $10 million.
This is the second time Ripple has submitted a supplemental authority in the remedies litigation, with the previous submission citing the SEC v. Terra settlement to justify its plea for a reduced penalty.
Once the SEC responds to Ripple’s latest filing, the court will determine the timing of the final judgment. The final verdict could be issued at any time, and industry stakeholders anticipate a decision this year.
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