SEC Rejects Ripple’s Binance Ruling Interpretation
The Securities and Exchange Commission (SEC) has filed a new document in the ongoing legal battle against Ripple Labs. The SEC argues that Ripple’s reliance on a recent ruling in the case against Binance Holdings is irrelevant and misguided.
The SEC’s filing criticizes Ripple’s attempt to use the Binance ruling to argue against harsh penalties in the Ripple case. The SEC claims that the Binance ruling is about a motion to dismiss, not a ruling on remedies.
SEC Highlights Omissions in Ripple’s Argument
The SEC also accuses Ripple of omitting crucial elements of the Binance ruling that undermine their argument. Specifically, the Binance court rejected the fair notice defense, which is similar to the argument Ripple is making.
SEC Emphasizes Regulatory Clarity
The SEC also points out that the Binance court confirmed that the crypto industry had been adequately notified of the regulatory framework through the SEC’s DAO Notice of July 2017. This challenges Ripple’s claim that there was a lack of regulatory clarity.
SEC’s Argument for Stricter Penalties
The SEC’s filing supports its argument for stricter penalties of more than $2 billion. The SEC argues that Ripple was aware of the potential securities implications of their actions and that the industry had been adequately notified of the regulatory framework.
Implications for the Crypto Industry
The ongoing case has broader implications for the crypto industry, as it will determine how digital assets are regulated and the enforcement actions that can be expected from US regulators.
