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

Ripple references the Binance court ruling with the courts that could affect the SEC v Ripple case and XRP price trends.

SEC vs. Ripple: Ripple Files Notice of Supplemental Authority

On Tuesday, July 2, XRP advanced by 1.85%. Following a 0.23% gain on Monday, July 1, XRP ended the session at $0.4854. Significantly, XRP extended its winning streak to four sessions. Furthermore, XRP bucked the broader market trend, with the total crypto market cap falling by 0.33% to $2,249 billion.

SEC vs. Ripple case-related updates drove buyer demand for XRP.

Defense Attorney James Filan shared the latest from the SEC vs. Ripple case, saying,

“Ripple has filed a Notice of Supplemental Authority regarding the recent Binance decision.”

In the Notice of Supplemental Authority, Ripple highlighted,

“Intangible digital assets do not fit neatly into the rubric set forth in the mere seven pages that comprise the Howey opinion. Also, the agency’s decision to oversee this billion dollar industry through litigation – case by case, coin by coin, court after court – is probably not an efficient way to proceed, and it risks inconsistent results that may leave relevant parties and their potential customers without clear guidance.”

Significantly, Ripple argued,

“The lack of regulatory clarity prior to 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 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.”

Will the Binance ruling support a less severe penalty for Ripple breaching US securities laws?

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.

What Was the Binance Ruling?

For context, Judge Amy Berman Jackman rejected SEC allegations that secondary market transactions of Binance’s 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 court’s view on the Binance ruling and the SEC vs. Ripple case verdict could be pivotal.

XRP Price Action

Daily Chart

XRP remained below the 50-day and 200-day EMAs, affirming the bearish price signals.

An XRP break above the 50-day EMA would support a move to the 200-day EMA. A breakout from the 200-day EMA could give the bulls a run at the $0.5739 resistance level.

SEC vs. Ripple case-related news requires investor attention.

Conversely, an XRP drop below the trend lines could signal a fall toward the $0.45 handle.

With a 14-day RSI reading of 48.07, XRP could drop to the $0.45 level before entering oversold territory.