HomeNewsPro-XRP Lawyer Illuminates Glimmer of Hope in Ripple vs SEC Showdown

Pro-XRP Lawyer Illuminates Glimmer of Hope in Ripple vs SEC Showdown

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  • Recent court decision may favor Ripple if it proves institutional investors suffered no financial harm from its actions.
  • Ripple’s response to SEC allegations is crucial for the case outcome and future cryptocurrency regulation precedents.

Ripple and the SEC, a recent court decision could impact the proceedings. Bill Morgan, an attorney supportive of Ripple, referenced a judgment from the Second Circuit Court of Appeals concerning the Aron Govil case. 

This ruling stated that the SEC cannot enforce disgorgement without evidence of financial loss to investors. Morgan suggests that this precedent might benefit Ripple in its defense against the SEC’s claims.

The SEC has accused Ripple of discriminatory practices in its sales of XRP to institutional investors. The agency alleges that Ripple failed to register the sales as required, which prevented the disclosure of discounts given to selected investors. 

Related: Market Stability: Ripple Releases 500M XRP from Escrow, Price at $0.61 – Is a 10% Surge on the Horizon?

The SEC argues that this lack of transparency led to $480 million in damages. According to the SEC, if Ripple had registered the sales, all investors would have had the opportunity to negotiate better terms.

The appellate court’s decision in the Govil case, which found that the SEC’s demand for disgorgement was inappropriate without proving financial harm to investors, could influence the Ripple case.

Morgan noted that this development might be advantageous for Ripple, particularly if it can be shown that the institutional investors did not suffer pecuniary losses from the actions in question.

Read more: Crucial Update: XRP Ledger (XRPL) Launches fixAMMOverflowOffer Amendment

Morgan also highlighted the significance of waiting for Ripple’s response to the SEC’s allegations, as it will crucially affect the outcome of the case. The resolution of this case could set a precedent affecting the regulatory landscape for cryptocurrencies in the United States.

The current price of Ripple (XRP-USD) is approximately $0.525351, reflecting a decrease of 7.49% as of the latest update. 

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628