- Ripple’s CLO Stuart Alderroti said the SEC’s recent lawsuit in court where a judge ruled that the SEC does not have the right to seek disgorgement from a defendant if the buyer has not suffered any economic loss emphasized the loss of the case.
- The ruling could play a major role in the ongoing battle between Ripple and Ripple, where Gary Gensler is seeking up to $2 billion from the blockchain payments company. There are also some reports.
As reported by Crypto News Flash, the US Securities and Exchange Commission has been relentlessly pursuing crypto companies, with its latest target being decentralized exchange Uniswap. However, the company continues to lose, and as attorney Stuart Alderotti emphasized, this latest loss could be related to how the lawsuit with Ripple is resolved.
Mr. Alderoti, Chief Legal Officer of Ripple, said: revealed It was recently reported that the Court of Appeals upheld a previous ruling against the SEC and ruled against it.
The case dates back to November of last year, when the 2nd Circuit Court of Appeals control In the SEC v. Government case, “the SEC cannot seek a catastrophic disgorgement award without first proving that the ‘investor’ has suffered actual economic harm.” In other words, no harm, no foul. ”
The agency appealed the U.S. Court of Appeals for the Second Circuit’s decision, but as Alderoti revealed, the higher court rejected the appeal.
Alderoti said:
The SEC keeps losing. The Second Circuit Court of Appeals declined to reconsider the decision. Govil Under the Act, the SEC has determined that if the buyer has not suffered any economic loss, the SEC is not entitled to disgorgement from the seller.
SEC keeps losing — will it impact Ripple/XRP litigation?
Under Gary Gensler, the SEC has kept up the pressure on crypto companies, taking several to court while dozens of others opted to settle for millions of dollars. Targets of the settlement included crypto finance companies Genesis and BlockFi, and exchanges Kraken and BitMEX, which provided a combined $251 million in funding to the institution.
Coinbase and Ripple remain two prominent crypto companies that have chosen to face the SEC head-on in court and litigate their remaining cryptocurrencies.
But while Gensler has won some battles, his losses to cryptocurrencies are piling up. The most notable one involved a Bitcoin spot ETF, and after months of rejecting the product, Grayscale took Gensler to court, and Gensler lost. More than $28.7 billion is currently invested in these ETFs.
In the Ripple case, the SEC lost some important battles, although the war is still on.
Every loss calls into question the SEC’s authority, approach, and leadership. Lawmakers, investors, and the general public have realized what the crypto community has been saying all along: that the industry needs new regulation, and that the SEC’s enforcement approach to regulation is insufficient. They are becoming more and more open to it.
Meanwhile, XRP is trading just below $0.5,lose 8% the past day 17% Last week as the market fell further into the weekend.
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