Ripple files new materials in SEC case, final ruling to come in July

The heat is on for Ripple vs. Binance! As the SEC vs. Ripple legal battle draws to a close, legal experts are discussing the next steps. Experts predict that the long-awaited final ruling could come in July.

Ripple Labs has filed a supplemental authorization notice with the United States District Court for the Southern District of New York. The move is intended to bolster their defense in the ongoing legal dispute with the Securities and Exchange Commission (SEC).

Ripple's legal team cites Binance case

Ripple's defense draws heavily on the recent ruling in the SEC v. Binance Holdings Ltd. case. The ruling, issued on June 28, 2024, held that there was insufficient evidence to classify secondary market transactions of BNB tokens as securities transactions. Ripple believes that this precedent is crucial because it is similar to their own case.

The Binance ruling highlights the difficulty of applying traditional securities laws to digital assets, noting that intangible digital assets do not fit neatly into traditional legal frameworks. Ripple used this observation to highlight the complexity of regulating digital assets.

The opinion criticized the SEC’s case-by-case litigation strategy as inefficient and leading to inconsistent results. Ripple argues that this approach fails to provide clear guidance to the cryptocurrency industry and its customers.

Ripple stressed the importance of judicial clarity in the legality of XRP sales. They argue that the court’s previous summary judgment supports their position and that regulatory clarity is critical to the cryptocurrency market.

Ripple argues that the SEC has not yet proven reckless behavior, which should mitigate the severity of any penalty. They argue that the lack of regulatory clarity before the court’s ruling supports their position against harsh penalties.

The importance of July

As the legal dispute between Ripple Labs and the SEC draws to a close, a final judgment is expected in July. Legal experts say that barring unexpected developments, the ruling could come as early as July 13 or by the end of the month.

Fred Rispoli, an attorney who supports XRP, predicts that Judge Torres will rule on remedies by July. The SEC is asking for a $2 billion fine, while Ripple argues that the fine should not exceed $10 million. Rispoli noted the historical significance of these dates, recalling last year’s ruling that XRP was not a security, which had a significant impact on its price.

Key Date: July 13

July 13 marks the anniversary of Judge Torres’s pivotal decision declaring XRP a non-security. The ruling caused XRP’s price to double in a matter of hours, indicating the potential for significant market movement based on the legal outcome. Rispoli’s suggestion of a final judgment date on that date reflects hopes for a similarly positive impact for Ripple and its backers.

The focus of the lawsuit has shifted from determining XRP’s security status to debating the financial penalties that Ripple must face. The SEC initially demanded billions of dollars in damages for unregistered securities sales. Recently, they reduced their request to $102 million, but Ripple rejected the offer, insisting that the fine should not exceed $10 million.

XRP's position is precarious after Ripple rejected the SEC's offer for a reduced sentence. Ripple's ongoing legal costs have exceeded $200 million. Currently, XRP is priced at $0.4830, up 0.8% in the last 24 hours and 1.5% in the past week. Trading volume increased by 14% to $862 million, indicating the potential for further gains if market sentiment remains positive.