Now, in the ongoing legal tussle between Ripple and the U.S. Securities and Exchange Commission (SEC), Stuart Alderoty, Ripple’s Chief Legal Officer, recently took to Twitter to reveal a pivotal moment in the SEC vs. Govil case appeal. This revelation could significantly sway the outcome of the Ripple-SEC lawsuit.
Understanding the Second Circuit’s Stand
Alderoty stressed the significance of the Second Circuit Court of Appeals’ firm stance in refusing to reconsider its decision in the SEC vs. Govil case. He noted that at the core of this decision lies a crucial principle,
“if a buyer suffers no financial loss, the SEC is not entitled to disgorgement from the seller.”
This straightforward yet powerful statement echoes against the backdrop of the SEC’s contentious pursuit of a hefty $2 billion fine from Ripple for the alleged unregistered sale of XRP tokens.
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.
Implications for Ripple’s Defense
The SEC’s failed appeal in the Govil case serves as a silver lining for Ripple’s legal defense. Armed with this ruling, Ripple could mount a formidable challenge against the SEC’s assertions regarding institutional investor losses and the justification for disgorgement. Alderoty’s tweet and Morgan’s insightful observations shed light on the evolving legal scene and its impact on Ripple.
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