YEREVAN (CoinChapter.com) — The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is heating up, with significant developments that could impact XRP’s future.
1. Judge’s Crucial Decision Looms
Recently, lawyer James Murphy, widely recognized in the XRP community as MetaLawMan, shared insights suggesting that Judge Torres might reject the SEC’s claims. Murphy states that the SEC’s claim of monetary losses for institutional investors lacks substantial evidence. This weakness makes their request for a hefty $876 million in disgorgement from Ripple appear uncertain.
In contrast, Ripple asserts that buyers suffered no financial harm. They reference the Govil case precedent, which opposes disgorgement without actual financial damage. This point of contention is central to Judge Torres’s decision-making, which could steer the case in a new direction.
2. The Controversial Precedent and Ripple’s Defense
The debate intensified around the SEC’s reliance on the SEC v. iFresh case, where it was determined that “pecuniary harm” could be shown by stock price manipulation.
The SEC accuses Ripple of similar practices, alleging price manipulation through automated bots—a claim Ripple executives have consistently denied. Murphy criticizes the SEC’s use of the iFresh decision, labeling it a misinterpretation of the 2nd Circuit’s ruling on disgorgement in the Govil case.
Furthermore, the iFresh decision was marked “NOT FOR ELECTRONIC OR PRINT PUBLICATION,” which typically weakens its validity as a precedent.
Attorney Jeremy Hogan echoes Murphy’s skepticism, emphasizing the necessity of obtaining permission from the appellate court before citing such cases. Hogan hopes that Judge Torres will recognize this oversight as the proceedings advance, potentially influencing her rulings on the matter.
3. Market Reaction and Future Speculations
As the legal tussle unfolds, XRP’s market performance has shown volatility. In the past 24 hours, XRP’s price dropped more than 2%, with trading values oscillating between $0.516 and $0.542. This fluctuation underscores the market’s sensitivity to the ongoing legal developments.
Looking ahead, the possibility of a hearing to address unresolved issues remains on the table. Such a hearing would not only clarify the positions of both parties but could also provide a clearer path forward for Ripple and its stakeholders. As the legal landscape continues to evolve, the financial implications for XRP remain a focal point for investors and the cryptocurrency community at large.
The outcomes of these legal battles are more crucial than ever at this pivotal moment for Ripple and the SEC. With key legal arguments under scrutiny and the market’s watchful eye on every development, the stakes are high in the unfolding saga of Ripple vs. SEC.
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