San Francisco-based enterprise blockchain company Ripple has filed a notice of supplementary authority regarding a recent ruling in the Binance case.
On June 28, the U.S. District Court for the District of Columbia partially granted Binance's motion to dismiss the agency's claims that sales of certain cryptocurrencies constituted securities sales.
Its notice, it mentioned that the court followed the summary judgment decision in the SEC v. Ripple Labs case issued by Judge Analisa Torres on July 13, 2023. As reported by U.Today, federal Judge Amy Berman Jackson specifically cited the Ripple ruling in the Binance decision, following the logic of Judge Torres by distinguishing secondary market sales and institutional sales. This comes after District Judge Jed Rakoff opined that the specific method of sales was irrelevant when it comes to determining the legal status of digital currencies.
Alex DovbnyaThe court has also said that the U.S. Securities and Exchange's approach to overseeing the industry with the help of litigation is not efficient since it fails to provide relevant parties with a sufficient level of clarity.
According to the company, this observation supports its argument that clarifying the legal status of various cryptocurrencies was the most important part of the highly significant summary judgment decision.
Ripple also argues that this regulatory uncertainty also means that Ripple did not show "reckless disregard" for the law with its XRP sales, meaning that the harsh remedies requested by the agency are unwarranted.
The company is still engaged in a remedies-related dispute with the SEC. As reported by U.Today, the SEC requested more than $2 billion worth of fines and penalties from Ripple.
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov