Coinbase and Ripple Labs are using Binance's legal victory to challenge ongoing cases with the US Securities and Exchange Commission (SEC). Both companies argue that the SEC's approach requires greater clarity and consistency, calling for formal rulemaking to better define the regulatory framework for digital assets.
Ripple has filed a notice of additional authority in connection with the recent decision in the Binance case.
As a reminder, on June 28, the U.S. District Court for the District of Columbia partially granted Binance's motion to dismiss the agency's claims that sales of certain cryptocurrencies constitute sales of securities.
In its notice, Ripple mentions that the court followed the summary judgment decision in SEC v. Ripple Labs, rendered by Judge Analisa Torres on July 13, 2023. The document states that the Binance judge followed the decision in the SEC v. Ripple case, applying that decision to secondary market sales of BNB, one of the disputed assets.
Additionally, Ripple claims that the judge in the Binance case acknowledged that there are problems in applying traditional securities laws to digital assets.
The court noted that the SEC's approach to prosecuting the industry through individual litigation rather than clear rules is ineffective.
Ripple argues that the lack of regulatory clarity noted by the Binance judge further supports its position that its actions do not require harsh enforcement.
The SEC is expected to file its objections to Ripple's notice in the coming days.
Ripple still insists on reducing the fine
It's worth noting that Ripple's recent statement is intended to support the company's position on the SEC's pending motion for relief.
As a reminder, the SEC has requested a fine of nearly $2.00 billion as a potential penalty for Ripple's violations of securities laws. The regulator also asked the court to impose a permanent ban on institutional sales of XRP by Ripple. In response, Ripple stated that the ban was unfounded and demanded a fine of no more than $10 million.
Meanwhile, this is the second time Ripple has filed a notice of additional powers in legal remedies proceedings. Last month, the cryptocurrency payments company cited the SEC's settlement against Terra to justify its motion to reduce the fine.
After the SEC responds to Ripple's latest statement, the court will determine the timing of the final decision. Notably, the final verdict could come at any time, with key stakeholders expecting a decision this year.
Coinbase also uses the judge's decision in the SEC case regarding Binance
Coinbase, in its new filing as part of its case with the SEC, also pointed out the lack of clarity regarding how cryptocurrency is regulated. The cryptocurrency exchange pointed the court to last week's ruling in SEC v. Binance, which rejected the agency's claim that secondary sales of BNB were securities.
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