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.
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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