XRP News Today: Ripple’s $2 Billion Penalty Looms as SEC Rebuffs Binance Comparison

Ripple caused a stir on Tuesday, filing the Notice of Supplemental Authority regarding the SEC vs. Binance ruling.

How did the SEC respond, and could Ripple still face a $2 billion penalty and an injunction prohibiting XRP sales to institutional investors?

SEC vs. Ripple: SEC Files Respons to Ripple Notice of Supplemental Authority

On Wednesday, July 3, XRP slid by 3.77%. Reversing a 1.85% gain from Tuesday, July 2, XRP ended the session at $0.4671. Significantly, XRP ended a four-session winning streak in a broad-based crypto reversal. The total crypto market cap declined by 3.52% to $2,170 billion, the largest single-day loss since June 11.

Meanwhile, SEC v Ripple case-related updates attracted investor attention. The SEC filed its response to the Ripple Notice of Supplemental Authority regarding the Binance ruling.

For context, Ripple filed the Notice of Supplemental Authority after the US courts rejected SEC claims that secondary market transactions of binance coin (BNB) met the criteria for securities under the Howey test.

Defense attorney James Filan shared the latest court filing. In its response, the SEC argued that the SEC vs. Binance ruling was irrelevant to the pending court ruling on remedies.

Notably, the SEC argued,

“Ripple highlights one observation in the nearly 90 pages of the Binance ruling, and tries to extrapolate from that general observation about the efficiency of the SEC’s litigation strategy, the notion that Ripple did not act with reckless disregard for the law such that harsh remedies are not warranted.”

Noticeably, the SEC skirted around the secondary market transactions of the binance coin ruling and the reference to the Programmatic Sales of XRP ruling.

SEC Redirects the Court Attention to the Matter of Fair Notice

The SEC focused on other elements of the Binance ruling, including fair notice.

In the filing, the SEC stated,

“Ripple’s latest letter entirely omits the one part of Binance that could conceivably have any relevance to the remedies motion. This is the portion of the ruling rejecting – like this court did – the argument that the fair notice doctrine provides a defense to liability.”

Fair notice is a legal concept requiring that individuals be adequately informed of any claims or legal actions against them. The primary purpose of fair notice is to ensure that the person facing a claim or legal action has sufficient information and opportunity to respond or defend themselves.

Regarding fair notice, the SEC referenced its position on providing the necessary notice, stating,

“The SEC put the industry on notice since the Jul 2017 DAO Report, which predated the overwhelming majority of Ripple’s sales at issue in this case.”

The SEC concluded,

“The Binance court also found that, while the fair notice defense is an objective inquiry, it was notable that the defendants were alleged to have actual notice that the SEC could pursue them, just like Ripple here had specific notice about the risks of its actions, based on the advice of counsel, and chose to proceed anyway.”

The SEC focused significantly on fair notice but avoided discussing the secondary market transactions of binance coin and the Programmatic Sales of XRP ruling.

Judge Amy Berman Jackson referenced the Programmatic Sales of XRP ruling in her court order, 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 […].”

Will this be the last court filing in the SEC vs. Ripple case?

SEC vs. Coinbase: Another SEC Headache?

Investors await a court ruling from the ongoing SEC v Coinbase (COIN) case, which could potentially influence the SEC vs. Ripple case.

In April 2024, Coinbase filed a Motion for Interlocutory Appeal, asking permission from the court to appeal the court ruling on the Coinbase Motion to Dismiss (MTD).

In April, Judge Katherine Failla rejected, in large part, the Coinbase Motion to Dismiss charges for operating as an unregistered securities exchange, surmising,

“The court concludes that because the well-placed allegations of the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities, Defendants’ motion must be denied in large part.”

Timing is everything. Ripple may cite the SEC vs. Coinbase case if Judge Failla grants the Coinbase Motion for Interlocutory Appeal. A favorable ruling for Coinbase against the SEC could positively impact XRP and the broader crypto market.

There are numerous SEC vs. crypto cases ongoing. Investors should monitor the news wires, real-time data, and expert commentary to manage trading strategies accordingly. Stay informed with our latest updates and insights to navigate the crypto market effectively.

XRP Price Action

Daily Chart

XRP sat comfortably below the 50-day and 200-day EMAs, confirming the bearish price trends.

An XRP break above the trend lines would support a move to the 50-day EMA. A breakout from the 50-day EMA could bring the 200-day EMA into play.

SEC vs. crypto case-related updates require investor consideration.

Conversely, an XRP break below $0.4650 could give the bears a run at the $0.45 handle.

With a 14-day RSI reading of 40.26, XRP may fall to the $0.45 level before entering oversold territory.