Ripple strengthens legal position with latest SEC filing 😎📈

Ripple Bolsters Legal Defense Against SEC

Ripple Labs has recently filed a notice of supplemental authority to strengthen its position in the ongoing legal battle with the Securities and Exchange Commission (SEC). This move was made in response to the SEC’s motion seeking remedies and a final judgment, adding weight to Ripple’s defense.

Ripple’s Strategic Defense

Ripple is leveraging a recent ruling from the US District Court for the District of Columbia in the case of SEC v. Binance Holdings, Ltd., No. 1:23-cv-01599-ABJ-ZMF to support its defense. This ruling partially granted and partially denied the SEC’s allegations against Binance for engaging in sales of unregistered securities.

The court found that the SEC failed to provide sufficient evidence that secondary market transactions involving tokens on exchanges qualified as securities transactions.
Ripple sees parallels between this ruling and its own legal battle, using it as a key reference point in their defense.

Analyzing the Binance Ruling

Ripple’s legal team highlights a crucial observation made by the Binance court regarding intangible digital assets and their complexity in fitting traditional securities law definitions. The court criticized the SEC’s piecemeal litigation approach, emphasizing the need for clarity and consistency in regulating the cryptocurrency market.

The court’s scrutiny of the SEC’s regulatory strategy resonates with broader criticisms within the crypto industry.

Seeking Clarity on XRP Sales Legitimacy

Ripple pushes for judicial clarity on the legality of XRP sales, citing the importance of the court’s previous summary judgment. They argue that regulatory uncertainty prior to the ruling supports their stance against severe penalties, highlighting the need for clear guidelines in the crypto market.

Ripple contends that their lack of recklessness in violating regulations should mitigate proposed remedies from the SEC.

Legal Counsel’s Argument

Michael K. Kellogg of Kellogg, Hansen, Todd, Figel, & Frederick PLLC, and Debevoise & Plimpton LLP, representing Ripple Labs, submitted the supplemental notice. The filing aims to counter the SEC’s motions and reinforce Ripple’s broader arguments on applying securities laws to cryptocurrency transactions, a contentious issue in the evolving digital asset landscape.