The post XRP Lawsuit Update: Why the SEC’s Case Against Ripple Could See a Drastic Fine Cut appeared first on Coinpedia Fintech News
Attorney John Deaton, who represents pro-XRP holders in the continuing legal dispute with the U.S. Securities and Exchange Commission (SEC), has argued in favor of Ripple’s probably low disgorgement. In stark contrast to the estimated $770 million, his remarks on @CryptoLawUS indicate that Ripple might need to pay $20 million or less.
Reasons Deaton Stated –
First, the basis of Deaton’s argument is the Supreme Court’s Morrison decision, which restricts American authority over purchases made outside of the country. He emphasized that XRP is categorized as an exchange or utility token by regulators like the FCA and FSA and is not regarded as a security in several nations, including the U.K., Japan, and Switzerland. The attempt by the SEC to pursue disgorgement for sales that occurred outside of its purview may be significantly impacted by this international classification.
Secondly, Deaton noted that the Ripple case is not structured as a fraud case but rather as an investigation into whether investors were damaged. He pointed out that most institutional XRP sales were to certified investors at prices below the stock’s current market value, suggesting that these investors suffered no losses. Furthermore, he stated that On-Demand Liquidity (ODL) transactions are safe since they happen quickly.
Thirdly, Deaton also disclosed that 75,000 owners of XRP have joined the SEC complaint, claiming that the regulatory agency is the real aggressor rather than Ripple. With this backing and the legal points made, Deaton confidently predicted that Ripple would prevail in this high-stakes legal battle by 99.9%.
The Same Claim By Other Prominent Figures
A few days back, several prominent members of the Ripple community had questioned the basis of SEC’s fine and authority.
During a conversation about the platform, Attorney Jeremy Hogan recently offered his opinions on the ongoing legal dispute between Ripple and the Securities and Exchange Commission. Hogan thinks there’s a high chance that the hefty $770 million fine currently looming over Ripple may be significantly reduced. Of course, the business would benefit greatly from this.
Stuart Alderoty, Chief Legal Officer of Ripple, also shared his perspective, referring to the SEC v. Govil case as an important precedent. The 2d Circuit in SEC v Govil held that the SEC couldn’t ask for a crippling disgorgement award w/o first proving that “Investors” suffered actual financial harm.
In response, Mobarak argued that since there’s no evidence of harm to investors, the SEC cannot reasonably justify imposing a massive $770 million fine on Ripple for its institutional XRP sales breach. According to Mobarak, it’s clear that the SEC lacks a solid basis for imposing such substantial fines on Ripple when there’s no proof of harm to investors.
#News #Ripple(XRP) [Source: Coinpedia]