The SEC vs. Ripple case is nearing its conclusion, with investors eagerly awaiting the outcome of Ripple’s alleged breach of US securities laws through the sale of XRP to institutional investors.
In March 2024, the SEC filed a remedies-related opening brief seeking a hefty penalty of nearly $2 billion and an injunction against XRP sales to US institutional investors. Ripple, on the other hand, countered with a request for a much smaller $10 million penalty, citing that it ceased breaching securities laws after the initial complaint and emphasizing the absence of fraud or recklessness allegations.
The SEC is expected to respond to the Supplemental Notice of Authority, with particular interest surrounding how they will address the recent Binance ruling. Will the SEC consider appealing the Binance ruling in relation to their case against Ripple?
The Binance ruling, delivered by Judge Amy Berman Jackman, dismissed SEC claims that secondary market transactions of Binance’s BNB token qualified as securities under the Howey test. Judge Jackman’s reference to the Programmatic Sales of XRP ruling further complicates the SEC’s position.
The Binance ruling may impact the SEC’s plans to appeal the Programmatic Sales of XRP ruling, potentially influencing the outcome of the SEC vs. Ripple case. The court’s interpretation of both rulings could be crucial in determining the final verdict.
As developments unfold, the XRP price action remains a point of interest for investors, reflecting the ongoing legal battle between Ripple and the SEC.