Ripple, a prominent player in crypto payments, has filed additional legal documentation in its ongoing litigation with the U.S. Securities and Exchange Commission (SEC).
This new submission pertains to a recent court ruling in the SEC v. Binance case, where the court partially granted and denied Binance’s motion to dismiss SEC allegations regarding the sale of certain digital assets as investment contracts.
Ripple noted that the judge in the Binance case employed similar reasoning as in the SEC v. Ripple case, particularly in assessing the sale of BNB tokens on the secondary market, one of the assets under scrutiny.
Moreover, Ripple argued that the Binance judge acknowledged the complexities of applying traditional securities laws to intangible digital assets.
The court criticized the SEC’s strategy of handling the crypto industry through individual lawsuits rather than establishing clear regulatory frameworks, deeming it inefficient.
Ripple asserted that the Binance judge’s recognition of regulatory uncertainties further bolsters its stance that its actions do not warrant severe penalties.
Following Ripple’s submission referencing the Binance ruling, the SEC is anticipated to file its counterarguments shortly.
Ripple Continues to Advocate for Lesser Penalties
It’s worth noting that Ripple’s recent legal brief aims to bolster its opposition to the SEC’s motion seeking 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 XRP sales. In response, Ripple argued against the necessity of an injunction and advocated for a penalty of no more than $10 million.
This marks the second instance where Ripple has filed supplemental legal arguments in the penalty phase. Last month, the company cited the SEC v. Terra settlement to support its plea for a reduced penalty.
Once the SEC responds to Ripple’s latest filing, the court will determine the schedule for issuing a final judgment. Stakeholders anticipate a decision later this year.
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