The US Security and Exchange Commission (SEC) finds itself in an uphill battle in its ongoing legal tussle with fintech firm Ripple Labs, the creator of XRP cryptocurrency, as it faced another setback last week.
According to Stuart Alderoty, Chief Legal Officer at Ripple Labs, the 2nd Circuit in the SEC v Govil case ruled that the SEC cannot demand a hefty disgorgement award without first demonstrating actual financial harm suffered by investors. In simpler terms, the SEC can't slap Ripple Labs with substantial fines unless they can prove that investors incurred significant financial losses. This is likely to be a challenging task, given the strong performance of XRP since its inception.
This growing optimism surrounding Ripple's favorable outcome in its battle against the SEC could be contributing to the recent surge in XRP's value.
XRP is currently trading slightly above $0.71, marking a more than 15% increase since Saturday. Technical momentum also plays a role in the surge. After overcoming substantial resistance in the $0.55 to $0.5850 range, XRP now faces minimal hindrances until reaching its yearly highs around $0.95.
As a result, XRP's recent 15% jump may just be the beginning, with the potential for gains exceeding 30% from current levels, provided the broader crypto market maintains its upward trajectory and the optimism surrounding the Ripple vs. SEC lawsuit prevails.
In addition to these developments, attorney John E Deaton, who closely monitors the Ripple vs. SEC lawsuit, emphasized that those who suggested the SEC's victory in the Ripple case earlier this year was a mere 50-50 were entirely mistaken. Referring to a July ruling, which indicated that Ripple Labs' XRP sales didn't necessarily violate US securities laws, Deaton stressed that the decision was overwhelmingly in Ripple's favor, more like a 90-10 ratio. He went further to claim that if Ripple ends up paying $20 million or less, it would signify a 99.9% legal triumph.
The broader crypto community on various platforms might not be unanimous in their views on this issue. However, the impact of these recent legal developments on Ripple and XRP's future appears to be a significant point of interest.