Ripple’s Legal Officer Highlights Setback for SEC
Ripple’s Chief Legal Officer, Stuart Alderoty, has pointed out a significant setback for the U.S. Securities and Exchange Commission (SEC). In the case of SEC v Govil, the 2nd Circuit ruled that the SEC cannot demand a substantial disgorgement award without proving that investors have suffered actual financial harm.
Attorney John Deaton’s Perspective
In response to this development, attorney John Deaton has weighed in on the Ripple case. He argues against those who claim that the SEC achieved a 50-50 victory, stating that it was more of a 90-10 situation in favor of Ripple. According to Deaton, if Ripple ends up paying $20 million or less, it should be considered a 99.9% legal victory for the company.
Insights from Lawyer Jeremy Hogan
Another prominent lawyer, Jeremy Hogan, explains that Alderoty’s focus on the Govil case is because it is currently in the “damages” phase. In this phase, XRP holders must have incurred losses on their holdings for Ripple to be held liable. Hogan also notes that if you purchased XRP at a price lower than its current value, you haven’t suffered damage from Ripple in this legal context.
Hogan further suggests that Ripple is likely to argue it is only responsible for a fraction of the $770 million in damages claimed by the SEC. This implies a partial victory for both parties in the SEC vs. Ripple lawsuit.
Ripple’s Mixed Outcome and Legal Battle
To recap, Ripple experienced a partial victory in July when a judge ruled that their sales of XRP on public exchanges were not illegal securities offerings. However, the judge upheld the SEC’s claim that Ripple’s $728.9 million of XRP sales to hedge funds and sophisticated buyers violated the law. This resulted in a mixed outcome for the case. It is important to note that the SEC attempted to appeal the ruling, but the judge did not allow it.
Hot Take: Ripple Edges Closer to Legal Victory
Despite some setbacks, Ripple appears to be edging closer to a legal victory in their ongoing battle with the SEC. The recent ruling in SEC v Govil highlights the requirement for the SEC to demonstrate actual financial harm before demanding substantial disgorgement awards. With attorneys like John Deaton and Jeremy Hogan arguing in favor of Ripple’s position, it seems that the company has a strong chance of minimizing potential damages and securing a favorable outcome in the lawsuit.
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