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The lack of regulatory clarity prior to that ruling in turn supports Ripples position that the Courts finding of a strict liability violation on some of Ripples sales but far fewer than the SEC alleged were violations does not reflect reckless disregard for the law or warrant harsh remedies. And, of course, the SEC did not even allege recklessness as to Ripple in its Complaint.

The SEC vs. Ripple case is in its final stages. Investors await a court verdict for Ripple breaching US securities laws for selling XRP to institutional investors.

In March 2024, the SEC filed its remedies-related opening brief. The SEC pursued an almost $2 billion penalty and an injunction prohibiting XRP sales to US institutional investors.

Ripple countered the SEC opening brief. In its remedies-related opposition brief, Ripple argued for a $10 million penalty, stating that it did not continue breaching US securities laws after the complaint. Ripple also pointed out that there were no allegations of fraud or recklessness.

The SEC will likely file a response to the Supplemental Notice of Authority. How the SEC argues against the Binance ruling would likely draw plenty of interest.

Will the SEC hint at an appeal against the Binance ruling?

The SEC may reference the SEC vs. Terraform Labs ruling. Judge Rakoff ruled that Terraform Labs and its founder, Do Kwon, violated US securities laws by failing to register TerraUSD and Luna as securities. Significantly, Judge Rakoff also referenced the Programmatic Sales of XRP ruling, opining that Judge Torres made an error in her ruling.

For context, Judge Amy Berman Jackman rejected SEC allegations that secondary market transactions of Binances BNB token meet the criteria for securities under the Howey test.

Judge Jackman also referenced the Programmatic Sales of XRP ruling, surmising,

The court is inclined to agree with the approach of the court in Ripple Labs, since the it-is-what-it-is approach of the SEC appears to be inconsistent with the clear Supreme Court directives [].

Meanwhile, the Binance ruling may also end SEC plans to appeal against the Programmatic Sales of XRP ruling. However, the courts view on the Binance ruling and the SEC vs. Ripple case verdict could be pivotal.

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XRP News Today: Ripple References the Binance Ruling in New Court Filing - FX Empire