Recent Developments in Ripple’s Legal Battle with the SEC 🚀
Ripple and the US Securities and Exchange Commission (SEC) have been engaged in a legal battle, with recent developments shedding light on the ongoing confrontation.
Most notably, Ripple filed a Notice of Supplemental Authority following a significant ruling related to Binance, a popular crypto exchange. The ruling dismissed the SEC’s claims regarding the securities transactions of Binance’s BNB token, a decision that Ripple aims to leverage in its favor.
Ripple Leveraging Recent Legal Ruling in its Favor 💼
Michael Kellogg, Ripple’s legal counsel, highlighted the significance of a recent magistrates’ decision in supporting Ripple’s case against the SEC’s allegations. Kellogg argued that the ruling underscores the need for clarity in determining the legality of XRP sales, indicating that Ripple’s actions did not warrant the harsh penalties proposed by the SEC.
“Ripple emphasizes the importance of clarity in determining the legality of XRP sales, as highlighted by the Court’s summary judgment decision. The absence of regulatory clarity prior to this ruling supports Ripple’s position that the alleged violations do not reflect reckless disregard for the law or warrant severe penalties,” the legal counsel stated.
The legal back-and-forth between Ripple and the SEC has had a direct impact on XRP’s market performance. Following the filing of the Notice of Supplemental Authority, XRP’s price saw a slight uptick, contrasting with the downward trends observed in other major cryptocurrencies like Bitcoin and Ethereum.
The Size of Ripple’s Penalty: A Key Point of Contention 🧐
A pivotal issue in the resolution of the case revolves around the size of the penalty imposed on Ripple. Initially seeking a $2 billion fine, the SEC faced pushback from Ripple, which argued for a maximum penalty of $10 million. Ripple drew comparisons with a previous case involving Terraform Labs, emphasizing the lack of direct fraud allegations in its own legal battle.
In response to Ripple’s stance, the SEC revised its proposed penalty, lowering it to $102.6 million. The SEC justified this figure by highlighting the discrepancy in penalty ratios between the two cases, ultimately settling on a penalty amount that exceeded Ripple’s preferred cap.
Closing Thoughts on Ripple’s Legal Saga 🌟
The legal dispute between Ripple and the SEC continues to unfold, with both parties making strategic moves to strengthen their arguments and positions. As the case progresses, the crypto community remains watchful of the outcome and its potential implications for XRP’s future trajectory.
🔗 Sources:
1. [Ripple Notice of Supplemental Authority](https://www.dropbox.com/scl/fi/7zuud4yarcp2nta2gdyoe/Ripple-Notice-of-Supplemental-Authority.pdf?rlkey=o9ntz66lp19y4jon13vau3ue8&e=1&dl=0)
2. [Judge Amy Jackson’s Decision](https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.248.0_1.pdf)
3. [SEC Proposal on Ripple’s Penalty](https://x.com/FilanLaw/status/1801755432102383850)
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