Ripple, a San Francisco-based blockchain technology company, has issued a supplementary notice 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 request to dismiss claims by the agency that certain cryptocurrency sales constituted securities sales. The court noted in its notice that it followed the summary judgment decision in the SEC v. Ripple Labs case, issued by Judge Analisa Torres on July 13, 2023.
Federal Judge Amy Berman Jackson specifically cited the Ripple ruling in the Binance decision, following Judge Torres’s logic by distinguishing between secondary market sales and institutional sales. This ruling came after District Judge Jed Rakoff expressed that the specific method of sales is irrelevant when determining the legal status of digital assets.
Read more Anticipated Resolution of the SEC vs. Ripple Case and Its Impact on Cryptocurrency
The court also criticized the SEC’s approach to industry oversight through litigation, stating it fails to provide sufficient clarity to relevant parties. Ripple claims this observation supports its argument that clarifying the legal status of various cryptocurrencies was the most significant part of the crucial summary judgment decision. Ripple further asserts that this regulatory ambiguity indicates it did not show “reckless disregard” for the law through its XRP sales, thereby making the severe penalties sought by the agency unwarranted. The SEC has demanded fines and penalties exceeding $2 billion from Ripple. The company remains embroiled in a compensation-related dispute with the SEC.
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