Ripple vs SEC: Ripple has recently submitted a Notice of Supplemental Authority related to the Binance court decision, in the ongoing legal clash between Ripple and the SEC.
The legal fight between Ripple and the SEC has been going on for more than three and a half years. Recently, the SEC reduced its penalty demand from $2 billion to $102 million. But Ripple surprised many by rejecting this offer. They’ve decided to continue the legal battle instead of settling for this reduced amount. This decision means the dispute will carry on, and the outcome could still have a big impact on Ripple and the cryptocurrency industry.
Ripple vs SEC Dispute
Ripple vs SEC: The dispute between Ripple and the SEC started because the SEC says Ripple’s XRP token is like a stock and should have been registered with them. Ripple disagrees, saying XRP is more like money or goods and shouldn’t be regulated by the SEC like stocks are.
In reply to SEC’s allegations, Ripple has been defending itself strongly. One of their recent moves in court is filing a Notice of Supplemental Authority. On July 2, 2024, Ripple Labs filed a Notice of Supplemental Authority in Judge Analisa Torres’s court.
James Filan, a defense lawyer who closely watches the case, shared this update. Ripple’s decision shows they think their defense is strong and they believe in their side of the case.
This is a way to tell the court about new legal decisions or examples that could affect the current case.
Ripple’s Argument
Ripple vs SEC: Ripple is using Binance’s recent legal victory to challenge how the SEC handles cryptocurrency regulation. Ripple is emphasizing that digital assets, which are intangible, don’t fit neatly into the framework established by the Howey opinion. They’re critical of the SEC’s method of regulating the industry through individual lawsuits, one cryptocurrency at a time, in various courts.
Ripple believes this approach isn’t efficient and could lead to inconsistent outcomes. They argue that the lack of clear regulations before the Binance ruling supports their stance that unintentional violations shouldn’t be treated as deliberate disregard for the law.
The specific contents of this filing haven’t been disclosed publicly, but it probably includes new information that Ripple thinks will make their defense stronger. This information might involve recent court rulings or changes in regulations that could affect how the SEC is pursuing its case against XRP, Ripple’s cryptocurrency.
Ripple’s Notice of Supplemental Authority
Ripple vs SEC: The Notice of Supplemental Authority serves several strategic purposes for Ripple. First, it helps Ripple by showing recent legal decisions that support their argument that XRP shouldn’t be called a security. This could help Ripple’s defense and weaken the SEC’s case.
Second, every move Ripple makes in this big case gets a lot of attention from the media. By defending itself strongly and challenging the SEC, Ripple wants to keep its investors and the cryptocurrency community feeling confident.
Finally, filing this notice is part of Ripple’s plan to speed up the case or get a better deal with the SEC. It shows Ripple is serious about fighting the allegations and wants a positive outcome.
Ripple vs SEC: Ripple’s decision could be driven by a couple of factors. First, they might be choosing principle over money by not accepting the penalty, which could be seen as admitting they did something wrong. Second, Ripple may have found new evidence or legal arguments that make their defense against the SEC stronger. The recent filing of a Notice of Supplemental Authority suggests they’re bolstering their case with additional support.
SEC’s Expected Response
Ripple vs SEC: The SEC is anticipated to reply to Ripple’s Notice of Supplemental Authority, possibly citing the SEC vs. Terraform Labs case. In that instance, Judge Rakoff concluded that Terraform Labs and its founder violated U.S. securities laws by failing to register TerraUSD and Luna as securities. Judge Rakoff also mentioned the Programmatic Sales of XRP ruling, implying that Judge Torres might have made an error in her decision.
The SEC’s offer of a reduced penalty indicates they may be open to settling the case. However, Ripple’s refusal complicates this possibility. Now, we anticipate more legal battles as both sides argue their positions in court before a judge.
Ripple could potentially face a penalty of $2 billion and a court order that stops them from selling XRP to institutional investors in the US. The SEC has also talked about appealing the ruling that allowed Ripple to sell XRP through automated processes.
Ripple vs SEC: Market Impact
Ripple vs SEC: The Ripple vs. SEC case has the potential to create a major precedent for the cryptocurrency industry. If Ripple wins and XRP isn’t classified as a security, it could validate similar cryptocurrencies and bring clarity to regulatory rules.
On the other hand, if the SEC wins and XRP is labeled a security, it could significantly impact Ripple and other similar cryptocurrencies. This decision might lead to stricter regulations and affect how these tokens are traded and governed, both in the U.S. and worldwide.
On Tuesday, July 2, XRP rose by 1.85%, closing at $0.4854. This marked its fourth consecutive session of gains, which contrasted with the overall market trend. During the same period, the total cryptocurrency market cap decreased by 0.33% to $2.249 trillion.
Ripple vs SEC: As Ripple fights the SEC over how XRP is classified, every legal move and court ruling carries great importance. Ripple’s recent filing of a Notice of Supplemental Authority shows they are committed to defending their stance strongly and shaping the outcome of this important case. The cryptocurrency community is watching closely for updates, knowing this case could impact how digital assets are regulated in the future.
Also Read:- XRP News: Can It Break Free from Sideways Struggle?
