Ripple Leverages Binance Ruling

Judge Amy Berman Jackson's recent judgment last weekend stating that the secondary market sales of BNB don't constitute securities has other market players on their toes.

In a similar stand to that of Coinbase, Ripple Labs is now using the Binance win to challenge the US Securities and Exchange Commission (SEC). Ripple is arguing that the regulatory approach needs more clarity and consistency.

Ripple stated that the SEC must develop formal rulemaking and define the regulatory scope for digital assets.

In a letter to Judge Torres, Ripple referenced Judge Berman's recent opinion on secondary market sales in the Binance case.

Ripple argues that this opinion is pertinent to its opposition to the SEC's motion for remedies in the ongoing lawsuit. It asserts that Judge Berman's ruling supports its stance and should be considered in evaluating the SEC's claims.

Earlier this week, Coinbase said the two different courts could announce diametrically opposite judgments for the top two exchanges facing legal lawsuits on a similar matter.

Coinbase expressed its concerns about the SEC's broad interpretation of securities laws in crypto. The U.S.-based crypto exchange said this law's application needs more definition and a definitive rulemaking process for legal clarity.

Ripple Points Out Misalignment with SEC's Howey Test

¡Ripple highlighted Amy Jackson's observation that digital assets do not fit tightly within the existing securities laws, such as the 1946 Howey Test, which financial authorities use to determine whether an asset is a security or a commodity.

Ripple Leverages Binance Ruling

Judge Amy Berman Jackson's recent judgment last weekend stating that the secondary market sales of BNB don't constitute securities has other market players on their toes.

In a similar stand to that of Coinbase, Ripple Labs is now using the Binance win to challenge the US Securities and Exchange Commission (SEC). Ripple is arguing that the regulatory approach needs more clarity and consistency.

Ripple stated that the SEC must develop formal rulemaking and define the regulatory scope for digital assets.

In a letter to Judge Torres, Ripple referenced Judge Berman's recent opinion on secondary market sales in the Binance case.

Ripple argues that this opinion is pertinent to its opposition to the SEC's motion for remedies in the ongoing lawsuit. It asserts that Judge Berman's ruling supports its stance and should be considered in evaluating the SEC's claims.

Earlier this week, Coinbase said the two different courts could announce diametrically opposite judgments for the top two exchanges facing legal lawsuits on a similar matter.

Coinbase expressed its concerns about the SEC's broad interpretation of securities laws in crypto. The U.S.-based crypto exchange said this law's application needs more definition and a definitive rulemaking process for legal clarity.

Ripple Points Out Misalignment with SEC's Howey Test

In the latest court filing, Ripple highlighted Amy Jackson's observation that digital assets do not neatly fit within the existing securities laws, such as the popular 1946 Howey Test.

The Howey Test is essential in determining if a transaction qualifies as an investment contract and is subject to securities regulation.

Ripple noted:

"The lack of regulatory clarity before that ruling, in turn, supports Ripple's position that the Court's finding of a strict liability violation on some of Ripple's sales - but far fewer than the SEC alleged were violations - does not reflect a reckless disregard for the law or warrant harsh remedies."

Binance's partial victory in its SEC lawsuit has become a strategic benchmark for other crypto entities facing legal challenges with the regulator.

This ruling may serve as a precedent that influences the outcomes of similar cases, including Ripple's ongoing legal battle with the SEC.

By leveraging this recent decision, Ripple aims to strengthen its case and push for greater regulatory clarity in the rapidly evolving digital asset landscape.

Ripple noted:

"The lack of regulatory clarity before that ruling, in turn, supports Ripple's position that the Court's finding of a strict liability violation on some of Ripple's sales - but far fewer than the SEC alleged were violations - does not reflect a reckless disregard for the law or warrant harsh remedies."

Binance's partial victory in its SEC lawsuit has become a strategic benchmark for other crypto entities facing legal challenges with the regulator.

This ruling may serve as a precedent that influences the outcomes of similar cases, including Ripple's ongoing legal battle with the SEC.

By leveraging this recent decision, Ripple aims to strengthen its case and push for greater regulatory clarity in the rapidly evolving digital asset landscape.