Ripple has been facing harsh penalties from the US SEC for its XRP sales, arguing lack of regulatory clarity. However, the recent court ruling on Binance’s BNB token has caught Ripple’s attention. Judge Amy Jackson dismissed SEC’s claims regarding Binance’s token sales, leading Ripple to file a Notice of Supplemental Authority. Ripple argues that the lack of regulatory clarity prior to the ruling supports their stance that the alleged illegal sales of XRP do not warrant harsh penalties as claimed by the SEC.
SEC Response to Ripple’s Argument
Despite Ripple’s attempts to use the Binance ruling in their favor, the SEC has dismissed its relevance to the case against Ripple. The Commission stated that the Binance case is “wholly irrelevant” to the one against Ripple. According to the SEC, the observations made in the Binance ruling do not reflect Ripple’s conduct or the appropriate remedies for the violations found in the case.
The ongoing legal battle between Ripple and the SEC has had a significant impact on XRP’s price. Last summer, XRP’s price surged by over 70% following a ruling that the company’s programmatic sales did not constitute offers of investment contracts. However, the recent developments in the case have caused XRP’s price to plummet to a multi-month low of $0.45. This price decline coincides with a broader market correction, with Bitcoin and Ethereum also experiencing significant losses.
The recent market turmoil has led to significant liquidations, with long positions accounting for the majority of the losses. Bitcoin crashed to $57,000 for the first time since early May, while Ethereum tumbled to $3,100. This market correction has resulted in $260 million in liquidations, highlighting the volatility and uncertainty in the cryptocurrency market.
Ripple’s attempts to use the Binance ruling to argue against the SEC’s penalties reflect the ongoing challenges faced by the company in the legal battle. The volatility in XRP’s price and the broader market corrections demonstrate the impact of regulatory uncertainties on the cryptocurrency market. As the legal battle continues to unfold, Ripple and the SEC will need to navigate through complex regulatory issues to reach a resolution that ensures clarity and stability for the industry.
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