The U.S. Securities and Exchange Commission (SEC) spoke emphatically in response to Ripple’s latest notice of supplemental authority, which mentioned a decision about Binance. The decision was used by Ripple to argue that the SEC’s “regulation-by-enforcement” method is ineffective.
It also said that the rules lack clarity to back up its case against the government. Jorge Tenreiro, a lawyer for the SEC, said that this attempt to link it to the Binance case was “completely irrelevant” to the present discussion about how to fix things.
The SEC also says that Ripple left out an important part of the Binance decision, which said that the fair notice concept could not be used as a defense against liability.
Ripple Challenges SEC Penalty
It was made clear in the decision that the SEC was following a “decades-old federal security statute” and that the 2017 DAO report, which came out before most of Ripple’s XRP sales, had warned the crypto industry.
A former SEC worker named John Reed Stark said that the Binance decision was a “mammoth loss” for the exchange.
The SEC also said that Ripple was communicating to lawyers about any problems that might arise from its deals. The company knew there might be trouble with the government because of this.
In April, when the SEC asked for sanctions, Ripple answered that any fine should not be higher than $10 million. In the past, the SEC told Ripple it needed to pay $2 billion.
