Ripple vs. SEC: Ripple’s Future Strategy Following SEC vs. Govil Appeal

Stuart Alderoty, the Chief Legal Officer of Ripple Inc., recently took to Twitter to draw attention to a significant development in the ongoing legal battle between Ripple Inc. and the U.S. Securities and Exchange Commission (SEC).

In his tweet, Alderoty highlights the importance of the Second Circuit Court of Appeals’ decision to not reconsider their ruling in the SEC vs Govil case. This decision has far-reaching implications for the lawsuit between Ripple Inc. and the SEC.

Alderoty specifically points out a crucial aspect of the ruling, stating that if a buyer does not suffer any financial loss, the SEC does not have the right to demand disgorgement from the seller. This statement is particularly relevant to the SEC’s demand for Ripple to pay $2 billion for the unregistered sale of XRP tokens and the profits derived from them.

In response to Alderoty’s tweet, lawyer Bill Morgan provides further insight into the SEC’s position and how it could impact Ripple. Morgan explains that the SEC is relying on the Govil decision to support its pursuit of disgorgement based on alleged financial harm to investors.

According to Morgan, the SEC argues that if Ripple had registered the sales, it would have been required to disclose the discounts offered to favored institutional investors to non-favored institutional investors. This, in turn, would have allowed the non-favored investors to negotiate better terms, even if they did not incur any losses.

The failure of the SEC’s appeal in the Govil case is a positive development for Ripple’s legal defense. Ripple can now use this ruling to challenge the SEC’s claims regarding institutional investor losses and the justification for disgorgement.

Both Stuart Alderoty’s tweet and Bill Morgan’s insights provide valuable perspectives on the evolving legal landscape and its implications for Ripple.

Tags: Ripple (XRP)