Ripple SEC Litigation Update
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Yerevan (CoinChapter.com) – As the legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) intensifies, there have been major developments that could affect the future of XRP.
1. An important judge’s decision is coming soon
Recently, James Murphy, a well-known lawyer in the XRP community who is widely regarded as MetaLawMan, shared some insights that Judge Torres may dismiss the SEC's allegations. Murphy said that the SEC claimed that institutional investors suffered financial losses, but lacked substantial evidence. This weakness makes their request for Ripple to pay up to $876 million in breach of obligations uncertain.
Instead, Ripple claims that the buyers did not suffer any economic loss. They cite Govil case precedent, which opposes the award of damages for breach of duty without actual economic damages. This controversial point is at the heart of Judge Torres’ decision and could steer the case in a new direction.
2. Controversial precedent and Ripple’s defense
Debate intensifies over the SEC's reliance on SEC v. iFresh, which ruled that "monetary loss" can be shown through stock price manipulation.
The SEC has accused Ripple of similar manipulative behavior, claiming that it manipulated prices through automated bots, an allegation that Ripple executives have consistently denied. Murphy criticized the SEC’s use of the iFresh ruling, calling it a misinterpretation of the Second Circuit’s ruling in the Govil case regarding breach of duty damages.
Additionally, the iFresh decision was marked as “not applicable to electronic or print publications,” which would generally weaken its validity as precedent.
Attorney Jeremy Hogan echoed Murphy's skepticism, stressing that permission from the Court of Appeal must be sought before citing such cases. Hogan hopes Judge Torres will recognize the oversight as the case progresses, which could affect her decision on the matter.
3. Market reaction and future speculation
As the legal battle unfolds, XRP's market performance has shown volatility. In the past 24 hours, XRP's price has fallen by more than 2%, with trading values fluctuating between $0.516 and $0.542. This volatility highlights the market's sensitivity to ongoing legal issues.
Looking ahead, a hearing to resolve outstanding issues remains a possibility. Such a hearing could not only clarify the positions of both parties, but also provide a clearer path forward for Ripple and its stakeholders. As the legal landscape continues to evolve, the financial impact on XRP remains a focus for investors and the cryptocurrency community at large.
The outcome of these legal battles is more critical than ever for Ripple and the SEC. As key legal arguments come under scrutiny and the market keeps a close eye on every development, the Ripple vs. SEC story continues to unfold and the stakes are getting higher.