Stuart Alderoty (Ripple’s CLO) has called attention to the recent setback that U.S. Securities and Exchange Commission had. The SEC lawsuit against Aron Govil could lead to a setback that has profound consequences for Ripple’s ongoing battle with the SEC. Alderoty made his remarks after a court ruling denied the SEC petition for review. This decision could impact the SEC’s ability to pursue disgorgement when investors have not suffered financial losses.
The SEC’s recent defeat occurred in its lawsuit against Aron Govil, where the Second Circuit Court of Appeals declined to review its decision from last year. According to the court ruling, the SEC can only demand that an issuer pay disgorgement if the buyer suffered economic losses. The court refused to change its original ruling despite the SEC trying to appeal it, which dealt a serious blow to their legal strategy. Alderoty, in a post on his X page highlighted the SEC’s repeated losses, especially when it comes to legal battles. “The SEC is losing.”
Second Circuit Court of Appeals declined to revisit their decision on Govil, which stated that if a seller does not suffer a financial loss then the SEC cannot be entitled to disgorgement.
Advert Ripple faces allegations that its XRP sale violates federal securities laws. Ripple is interested in using the Govil ruling to boost its defense, as the SEC has sought nearly $2 billion in fines and penalties. Investors’ financial losses are the key issue. The Govil case could be pivotal as Ripple gets ready to submit its response to SEC’s remedy-related brief on April 22. Ripple’s ability to convince judge Analisa Tores that investors have not suffered financial losses because they acquired XRP could be a significant factor in the outcome of this case. Ripple would argue that disgorgement only applies to institutions who bought XRP at a price above the current one. Market Impact: Price Fluctuations of XRP.
During these legal developments the price fluctuated. XRP price jumped by 1.5% after the HashKey Group and TON Foundation announced their partnership.
In the last 24 hours it dropped nearly 11%. XRP is still a major player in the crypto market and its movements are closely monitored by both investors and enthusiasts.