The post Ripple vs. SEC: Ripple’s Path Forward After SEC vs. Govil Appeal appeared first on Coinpedia Fintech News
Stuart Alderoty, the Chief Legal Officer of Ripple Inc., took to Twitter to highlight a pivotal development in the appeal of the SEC vs Govil case which can significantly affect the lawsuit between Ripple Inc. and the U.S. Securities and Exchange Commission.
Stuart Alderoty’s Tweet
In his tweet, Alderoty highlights the significance of the Second Circuit Court of Appeals’ refusal to reconsider their decision in the SEC vs Govil case.
He highlights a crucial aspect of the ruling, stating, “if a buyer suffers no financial loss, the SEC is not entitled to disgorgement from the seller.”
This statement resonates particularly with the tension prevailing in the SEC’s irrational demand of a $2 billion file from Ripple for the unregistered contractual sale of XRP tokens and the profit gained with them.
Bill Morgan’s Insight
Responding to Alderoty’s tweet, lawyer Bill Morgan provides deeper insight into the SEC’s position and its potential impact on Ripple. Morgan explains the SEC’s reliance on the Govil decision, emphasizing the agency’s pursuit of disgorgement based on alleged financial harm to investors.
Morgan writes, “The SEC alleges that had Ripple registered the sales it would have needed to disclose the discounts offered to favored-institutional investors to the non-favored institutional investors which would have allowed them to negotiate better terms.” Meaning that “even if they did not incur losses they could have done better.”
The failure of the SEC’s appeal in the Govil case is a positive development for Ripple’s legal defense. Ripple could leverage this ruling to challenge the SEC’s claims regarding institutional investor losses and the basis for disgorgement.
Stuart Alderoty’s tweet and Bill Morgan’s insights offer valuable perspectives on the evolving legal landscape and its implications for Ripple.