Former SEC lawyers argue that the remedies phase in the Ripple case favors the SEC, dismissing the relevance of the Chevron ruling.
Former U.S. Securities and Exchange Commission (SEC) attorneys contend that the remedies phase is advantageous to the SEC as Ripple endeavors to bolster its argument that injunctions and penalties must be minimal.
The attorneys also addressed the implications of the Supreme Court’s Chevron ruling in SEC vs Ripple and other litigation.
In a post on X, retired SEC securities counsel Marc Fagel stated that the Supreme Court’s decision on Chevron deference pertains to the rulemaking of government agencies and does not have any implications for SEC enforcement actions.
In the event of an ambiguous statute, the courts would defer to an agency.
“The courts are not bound by the SEC’s findings and must independently determine whether the defendant violated the law,” continued Fagel.
He also clarified that Judge Torres did not defer to the SEC, which is why she issued a divided summary judgment ruling. Consequently, the XRP lawsuit is not affected by the reversal of Chevron deference.
According to James Farrell, an ex-SEC lawyer, the SEC has an advantage in the remedies portion because Judge Torres is aware that approximately $770 million in XRP sales violated the securities laws.
The dispute pertains to the percentage of these sales that Ripple is required to pay the SEC, the additional penalty, and whether Ripple is still in violation of the law.
Judge Jackson in SEC vs Binance adheres to Judge Torres’ determination regarding the security status of XRP, which asserts that programmatic sales and secondary sales are comparable.
She refuted the US SEC’s assertion regarding Binance’s BNB secondary sales and clarified that secondary sales do not constitute as securities under the Howey Test.
Binance’s partial legal victory was challenged by Coinbase and Ripple Labs in order to address the absence of clarity and consistency in crypto regulatory frameworks.
Attorney Jeremy Hogan stated that the filing is pertinent in relation to the potential injunction and the sanction.
He is of the opinion that Binance’s opinion has substantiated Ripple’s argument that the status of crypto as a “security” is a cluster. Consequently, he believes that the “injunction and fine should both be light.”
The price of XRP has decreased by 1% over the past 24 hours, and it is currently trading at $0.48.
The 24-hour low and high are $0.478 and $0.487, respectively. Additionally, the trading volume has increased by 16% in the past 24 hours, suggesting a recent increase in interest among traders.
