Recently, Ripple has been using a court ruling regarding Binance’s BNB token to bolster its defense against the SEC’s harsh penalties for XRP sales. The company argues that the lack of regulatory clarity surrounding the legality of these sales should not warrant severe punishments. The ruling that caught Ripple’s attention was made by Judge Amy Jackson, who dismissed the SEC’s claims that secondary market sales of Binance’s BNB token were securities transactions.
While Ripple sees the Binance ruling as supportive of its position, the SEC has dismissed the relevance of this case to Ripple’s situation. The regulator argues that the observation made in the Binance ruling does not speak to Ripple’s conduct or the appropriate remedies for the violations found in Ripple’s case. According to the SEC, trying to extrapolate from the Binance ruling to Ripple’s situation is “wholly irrelevant.”
The ongoing legal battle between Ripple and the SEC has had a significant impact on the value of XRP. Last summer, when Judge Torres ruled in favor of Ripple’s programmatic sales to secondary trading platforms, XRP’s price soared by over 70%. However, following the latest developments in the case, XRP’s valuation has plummeted to a multi-month low of $0.45. This 7% decline on a daily scale coincides with a broader market correction, with Bitcoin and Ethereum also experiencing significant losses.
After Ripple filed a Notice of Supplemental Authority based on the Binance ruling, the SEC responded by stating that the case against Binance is not relevant to the case against Ripple. The Commission argues that the Binance ruling does not speak to Ripple’s conduct or the appropriate remedies for the violations found in Ripple’s case. The SEC’s official response suggests that Ripple’s attempt to use the Binance ruling in its favor is misguided.
As Ripple continues to fight against the SEC’s allegations of illegal XRP sales, the company is using any legal precedent it can find to support its case. However, the SEC remains steadfast in its position that the Binance ruling has no bearing on the case against Ripple. The market response to the ongoing legal battle has been volatile, with XRP’s value fluctuating in response to each new development. It remains to be seen how this legal battle will ultimately impact Ripple, XRP, and the broader cryptocurrency market.
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