Bitrabo Editorial
The Securities and Exchange Commission (SEC) has made a bold move in response to Ripple Labs in their legal battle. On July 3, 2024, the SEC submitted a new document to the United States District Court for the Southern District of New York to counter Ripple’s recent legal maneuver, challenging the company’s reliance on a prior ruling involving Binance Holdings, Ltd.
SEC Criticizes Ripple’s Argument
In a filing authored by Jorge Tenreiro, the SEC sharply criticizes Ripple’s interpretation of the Binance ruling. Tenreiro dismisses Ripple’s reliance on the Binance decision as irrelevant to their ongoing case, stating that it does not support Ripple’s claim that harsh penalties are unwarranted.
Furthermore, Tenreiro points out that Ripple selectively quoted the Binance ruling to suit their argument while ignoring aspects that contradict their position. Specifically, the SEC highlights that the Binance court’s rejection of a fair notice defense mirrors the situation in the Ripple case.
The SEC also challenges Ripple’s assertion of a lack of regulatory clarity by emphasizing that the agency had provided ample warning to Ripple through legal advisories. This contradicts Ripple’s stance and supports the SEC’s argument for stiffer penalties exceeding $2 billion.
This legal clash has far-reaching implications for the cryptocurrency industry, setting a precedent for how digital assets are regulated in the US. The SEC’s latest filing reaffirms its commitment to exercising regulatory oversight over the crypto market.
As of now, XRP is trading at $0.45729.