SEC’s Position Weakens in Ripple vs SEC Case: No Investor Loss and Disgorgement Found

In the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), Ripple’s Chief Legal Officer, Stuart Alderoty, recently shared a significant development on Twitter. The appeal in the SEC vs. Govil case could have a major impact on the outcome of the Ripple-SEC lawsuit.

Alderoty highlighted the importance of the Second Circuit Court of Appeals’ firm stance in refusing to reconsider its decision in the SEC vs. Govil case. The core principle of this decision is that the SEC cannot claim disgorgement from a seller if the buyer did not suffer a financial loss.

This statement holds weight in light of the SEC’s pursuit of a $2 billion fine from Ripple for the alleged unregistered sale of XRP tokens. The SEC’s relentless pursuit is facing a setback with the Second Circuit Court of Appeals standing firm in their decision.

Lawyer Bill Morgan responded to Alderoty’s tweet, providing further insight into the SEC’s position and its potential impact on Ripple. Morgan explained that the SEC relies on the Govil decision to pursue disgorgement based on alleged financial harm to investors.

The failed appeal in the Govil case is a positive development for Ripple’s defense. With this ruling in their favor, Ripple can challenge the SEC’s claims regarding institutional investor losses and the justification for disgorgement. Alderoty’s tweet and Morgan’s analysis shed light on the changing legal landscape and its implications for Ripple.

This development could be a turning point in the case, and it will be interesting to see how it unfolds.