Ripple is leveraging a recent Binance ruling to argue for reduced penalties in its ongoing lawsuit with the US Securities and Exchange Commission (SEC). The company cites regulatory uncertainty as a key factor in its defense. The SEC has reduced its proposed penalty from $2 billion to $102.6 million, while Ripple argues for a maximum fine of $10 million.

Ripple's legal counsel, Michael Kellogg, asserts that a recent decision dismissing the regulator’s claims that secondary market sales of Binance’s BNB token constituted securities transactions supports Ripple's case. The company argues that its alleged illegal sales of XRP do not warrant the "harsh remedies" the SEC proposes.

The ongoing lawsuit has had a noticeable impact on XRP’s market performance. The token's price increased following the filing of the letter and remains slightly in the green on a daily scale. This is in contrast to other leading cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), which have seen significant drops in the past 24 hours.

The primary issue in the case is the size of Ripple's penalty. Ripple compares its lawsuit to the one between the regulator and Terraform Labs, stating that direct allegations of fraud were only evident in the one against the defunct crypto company. The SEC has since softened its stance, proposing a $102.6 million penalty.