Ripple company’s lawyer, Stuart Alderoty, made a post celebrating the US Securities and Exchange Commission’s (SEC) latest defeat in the case.
2nd Circuit’s decision in SEC v. Drawing attention to its decision in the Govil case, Alderoty emphasized that the SEC cannot demand significant compensation without proving that investors have experienced concrete financial disruptions.
This development, which can be briefly summarized as “no harm, no penalty”, is Ripple’s SEC It looks like it could have broad implications for his ongoing case with the.
The impact of the recent court decision has led many industry observers to speculate about its potential impact on the SEC-Ripple saga.
Legal analyst Jeremy Hogan argued that Ripple’s liability depends on whether XRP investors actually suffered monetary losses.
Simply put, XRPIf you purchased at a price lower than its current market value, Ripple is not responsible for any losses. If the majority of XRP holders do not face financial losses, the SEC may find itself backed into a corner, potentially leading to a more favorable settlement for Ripple.
There is also a lot of debate about how much money the SEC wants Ripple to pay. Commentator Yassin Mobarak noted that if investors are not adversely affected, the SEC may have a hard time forcing Ripple to pay the rumored $770 million penalty for institutional sales.
Before this, lawyer John Deaton stated that Ripple could reduce this large penalty amount. He mentioned a past case in which the SEC demanded $23 million but received only $130,000.
Deaton expects a similar outcome for the Ripple case, meaning the San Francisco-based company will likely manage to bring down the fine by a significant margin.