Ripple, a prominent company in crypto payments, has submitted additional legal documentation in its ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC).
This new filing pertains to a recent court ruling in the SEC v. Binance case, where the court partially granted and partially denied Binance’s motion to dismiss SEC allegations regarding certain digital asset sales being deemed investment contracts.
Ripple highlighted that the judge in the Binance case applied a similar rationale as seen in the SEC v. Ripple case, particularly concerning the sales of BNB in the secondary market, a key asset under scrutiny.
Moreover, Ripple argued that the Binance judge acknowledged the complexities in applying traditional securities laws to intangible digital assets. The court criticized the SEC’s strategy of using individual lawsuits rather than clear regulatory frameworks, deeming it inefficient.
Ripple asserts that the regulatory ambiguity noted by the Binance judge further reinforces its stance that its actions do not merit severe penalties.
Following Ripple’s submission of supplemental documentation referencing the Binance decision, the SEC is expected to present its counterarguments in the coming days.
Ripple Continues to Advocate for Lesser Penalties
It’s noteworthy that Ripple’s recent filing aims to bolster its defense against the SEC’s motion for penalties. Previously, the SEC proposed a potential fine of nearly $1.95 billion for Ripple’s alleged violations of securities laws, alongside a permanent injunction against Ripple’s institutional sales of XRP. In response, Ripple argued against the necessity of an injunction and advocated for a penalty not exceeding $10 million.
This marks the second instance where Ripple has submitted supplemental documentation in the penalty phase of the litigation. Previously, the company referenced the SEC v. Terra settlement to support its plea for a reduced penalty.
Once the SEC responds to Ripple’s latest submission, the court will decide on the timeline for issuing a final judgment. Stakeholders anticipate a decision sometime this year.
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