In the realm of Ripple XRP updates, Judge Torres is anticipated to rebuff the SEC’s entreaty during the remedies phase.
Lawyer James Murphy, renowned as MetaLawMan within the Ripple XRP community, contends that the SEC’s assertion of institutional investors enduring monetary loss lacks substantial backing. Furthermore, the legitimacy of disgorgement is poised for scrutiny.
Ripple XRP News: Why SEC Argument on Disgorgement Is Weak
The U.S. Securities and Exchange Commission’s rationale for advocating injunctions and disgorgement appears feeble, according to Murphy. Specifically, he suggests that Judge Torres might dismiss the SEC’s claim regarding financial detriment experienced by institutional investors.
The crux of the SEC’s argument, as dissected by Pro-XRP advocate James Murphy, fails to introduce any substantial insights regarding the purported pecuniary harm faced by institutional investors. The SEC’s demand for $876 million in disgorgement from Ripple Labs is hinged upon the notion that certain institutional investors suffered losses. However, Ripple counters this assertion by referencing the Govil case precedent, which posits that disgorgement is unwarranted in the absence of financial harm to the buyer.
Murphy further critiques the SEC’s reliance on the SEC v. iFresh case, a district court ruling that predicates the requirement of “pecuniary harm” on the artificial inflation of stock prices. Allegations of Ripple’s manipulation of XRP prices, including through automated bots, have been vehemently refuted by Ripple XRP executives on numerous occasions.
In Murphy’s assessment, the iFresh decision represents a misinterpretation of the Govil precedent on disgorgement. Notably, the judge responsible for the iFresh ruling explicitly designated it as “NOT FOR ELECTRONIC OR PRINT PUBLICATION.”
The SEC contends that certain institutional buyers suffered monetary losses due to receiving lesser discounts on XRP compared to others who paid higher prices.
Judge Torres to Deny SEC’s Argument
Judge Torres is anticipated to rebuff a portion of the SEC’s motion seeking $2 billion in fines, as per James Murphy’s analysis. He deems it inappropriate to cite a decision marked with a “not for publication” disclaimer as a precedent, considering such rulings as the weakest foundation for any legal argument.
Nevertheless, Murphy does not completely discount the possibility of Judge Torres adopting the reasoning presented in the iFresh case. Additionally, there remains a likelihood that the Judge might convene a hearing to address lingering questions concerning the stances of the involved parties.
Responding to James Murphy’s assertions, lawyer Jeremy Hogan underscores the necessity of obtaining appellate court permission before citing such cases. He expresses hope that the Judge will be cognizant of this requirement, especially considering Ripple XRP lack of a counterargument.
The XRP Price currently stands above $0.52, marking a decrease of over 2% within the past 24 hours. During this timeframe, Ripple XRP price fluctuated between $0.518 and $0.542.