Update on XRP Lawsuit Ripples Latest Filing Cites Binance Ruling to Argue Against Severe Penalties

Ripple, a leading crypto payments company, has submitted a supplemental authority in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
The new filing is related to a recent court decision in the SEC v. Binance lawsuit, in which the court denied and partly granted the exchange’s motion to dismiss the SEC’s charges regarding certain digital asset sales constituting investment contracts.
Ripple highlighted that the judge in the Binance case applied summary judgment reasoning similar to the SEC v. Ripple case, extending the decision to the secondary market sales of BNB, one of the assets in question.
Furthermore, Ripple argued that the Binance judge acknowledged the challenges in applying traditional securities laws to intangible digital assets.
The court noted that the SEC’s method of litigating the industry through individual litigations instead of providing clear regulations is inefficient.
Ripple asserts that the lack of regulatory clarity observed by the Binance judge further supports its position that its actions do not merit severe penalties.
Following Ripple’s supplemental authority on the Binance ruling, the SEC is expected to file its opposition in the coming days.
Ripple Continues to Advocate for a Reduced Penalty
It is important to note that Ripple’s recent brief aims to support the company’s opposition to the SEC’s pending motion for penalties.
The SEC had requested a potential penalty of nearly $1.95 billion for Ripple’s securities law violations, along with a permanent injunction on Ripple’s institutional sales of XRP. In response, Ripple argued that an injunction is unnecessary, advocating for a penalty of no more than $10 million.
This marks the second time that Ripple has submitted a supplemental authority in the penalties litigation. Last month, the crypto payments company referenced 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 anticipating the decision this year.
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