Legal Insights on the Ripple Case
As Ripple continues to argue for lighter penalties and injunctions in its lawsuit, former U.S. Securities and Exchange Commission (SEC) lawyers suggest that the remedies phase is in the SEC's favor. They also clarified that the Supreme Court's Chevron deference ruling does not impact the SEC vs. Ripple case or other similar lawsuits.
Chevron Deference Ruling: No Impact on Ripple Case
Former SEC lawyer Marc Fagel stated that the Supreme Court’s ruling on Chevron deference pertains to rulemaking by government agencies, not SEC enforcement actions. He explained that courts defer to an agency when a statute is unclear, but in enforcement actions, courts independently determine if the defendant broke the law without deference to the SEC. This is why Judge Torres issued a mixed summary judgment ruling without deferring to the SEC, indicating that the Chevron ruling has no bearing on the XRP lawsuit.
SEC’s Upper Hand in Remedies Phase
Ex-SEC lawyer James Farrell asserts that the SEC holds an advantage in the remedies phase, given that Judge Torres is aware that $770 million in XRP sales violated securities laws. The ongoing dispute focuses on what percentage of these sales Ripple must pay to the SEC, additional penalties, and whether Ripple continues to violate the law.
Binance’s Partial Win and Its Relevance
CoinGape reported that Judge Torres' decision on XRP's security status, particularly regarding programmatic and secondary sales, was followed by Judge Jackson in the SEC vs. Binance case. Judge Jackson dismissed the SEC’s claim that Binance’s BNB secondary sales qualified as securities under the Howey Test.
Ripple Labs and Coinbase referenced Binance’s partial legal victory to highlight the lack of regulatory clarity and consistency in the crypto industry. Attorney Jeremy Hogan noted that this filing is pertinent to the potential injunction and fine, reinforcing Ripple's argument that the classification of crypto as a "security" is complex and thus warrants lighter penalties.
Current XRP Market Performance
The XRP price has fallen by 1% in the past 24 hours, currently trading at $0.48, with a 24-hour low and high of $0.478 and $0.487, respectively. The trading volume has increased by 16% over the last 24 hours, indicating heightened interest among traders.
Conclusion
The XRP lawsuit continues to develop, with former SEC lawyers indicating that the remedies phase may favor the SEC. The Supreme Court's Chevron ruling does not impact the case, and recent developments in other crypto lawsuits may influence the final outcome. As the market reacts to these legal battles, Ripple’s future remains closely watched by investors and the broader crypto community.
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