- Ripple leverages Binance ruling in ongoing SEC lawsuit.
- Court decisions affirm secondary crypto sales are not securities.
- Ripple criticizes the SEC’s regulatory approach as harmful to the industry.
Ripple Labs has filed a supplemental brief in its ongoing legal battle with the U.S. Securities and Exchange Commission, citing a recent court ruling in the SEC’s case against Binance.
This move highlights a key victory for the crypto industry, as the Binance ruling affirmed that secondary market sales of cryptocurrencies do not constitute securities, potentially strengthening Ripple’s defense in its own case.
XRP advocate James K. Filan alerted the XRP community to this development via an official X post.
It was just the earlier week, the crypto community celebrated a landmark victory following Judge Amy Berman Jackson’s ruling on Binance’s BNB token. Citing Judge Analisa Torres’ XRP ruling that classified secondary sales of XRP as non-securities, Judge Jackson dismissed the SEC’s allegations against BNB’s secondary sales.
While the ruling reinforced XRP’s status as a non-security, analysts expect it to also significantly impact lawsuits involving crypto exchanges like Coinbase, Kraken, and Consensys.
Fox Business reporter Eleanor Terrett shared an X post highlighting the ruling’s potential impact on the XRP case, stating, “And the SEC lawyers can no longer argue that the Ripple ruling was merely an outlier that no other judges agree with.”
Referencing Judge Jackson’s ruling, Ripple reinforced its position in the ongoing battle against the Securities and Exchange Commission (SEC). Pointing out the “lack of regulatory clarity” prior to the ruling, Ripple argued:
The lack of regulatory clarity prior to that ruling in turn supports Ripple’s position that the Court’s finding of a strict liability violation on some of Ripple’s sales – but far fewer than the SEC alleged were violations – does not reflect reckless disregard for the law or warrant harsh remedies. And, of course, the SEC did not even allege recklessness as to Ripple in its Complaint.”
Furthermore, emphasizing the inconsistencies of the Howey test, Ripple argued that the digital asset defies simple classification under its strict framework. The platform also condemned the regulator’s approach of overseeing the “billion-dollar industry through litigation – case by case, coin by coin, court after court,” asserting that this piecemeal approach stifles the crypto industry and leaves stakeholders and consumers in a regulatory limbo.
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