The U.S. SEC has responded to Ripple’s notice of supplemental authority related to the Binance decision, which Ripple argues supports its opposition to the proposed remedies.
According to a filing shared by renowned defense attorney James K. Filan, the SEC argued that the Binance decision is irrelevant to the current remedies motion.
**SEC’s Position**
The SEC maintained that Ripple’s attempt to use a single observation from the nearly 90-page Binance ruling to argue against severe penalties is unfounded. Specifically, the SEC claimed that Ripple’s effort to use the Binance decision to shape its litigation strategies is unjustified.
Additionally, the SEC noted that the Binance decision did not pertain to Ripple’s conduct or its penalty for violating securities laws. The regulator also accused Ripple of omitting a crucial part of the Binance decision that could significantly influence the remedies decision.
The SEC emphasized that the court had dismissed Binance’s fair notice doctrine argument and determined that the defendants were fully aware of potential regulatory risks. The filing stated, “The Binance court also found that, while the fair notice defense is an objective inquiry, it was ‘notable’ that the defendants were alleged to have actual notice that the SEC could pursue them, […] just like Ripple here had specific notice about the risks of its actions, based on the advice of counsel […] and chose to proceed anyway.”
Consequently, the SEC argued that Ripple’s attempt to leverage the Binance decision to argue against severe penalties is “wholly irrelevant.”
**XRP Community Reacts**
The SEC’s response to Ripple’s supplemental authority filing sparked reactions among XRP supporters. Prominent community member Ashley Prosper questioned why the SEC dedicated an entire paragraph to the fair notice doctrine when Ripple had not mentioned it in its notice.
Prosper argued that Ripple had no fair notice as it was the first target of the SEC lawsuit. He also criticized the SEC for its recent legal setbacks following Judge Torres’ summary judgment in favor of Ripple. Prosper urged Judge Analisa Torres to consider Ripple’s supplemental authority to strengthen her ruling against any potential SEC appeal.
**Ripple’s Supplemental Authority**
The SEC’s filing came a day after Ripple submitted its supplemental authority concerning the Binance decision. As previously reported, Ripple stated that the Binance judge followed Judge Analisa Torres’ reasoning, declaring that secondary market sales of BNB do not constitute investment contracts.
Ripple also claimed that the Binance judge criticized the SEC’s regulatory approach, arguing that the judge’s acknowledgment of the lack of clarity in the industry supports its case against severe penalties. Both parties now await the court’s final judgment.
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