Ripple’s Chief Legal Eyes SEC Power Limit in Govil Ruling – CoinGape

The U.S. Court of Appeals for the Second Circuit recently established new boundaries for the Securities and Exchange Commission’s (SEC) ability to pursue disgorgement, directly impacting the scope of regulatory enforcement. Chief Legal Officer of Ripple, Stuart Alderottipoints to the ruling as a significant moment, especially in the context of Ripple’s ongoing legal challenge to the SEC.

Jignesh There was a government lawsuit Courts require the SEC to establish concrete evidence of economic harm to investors before seeking disgorgement. This reinforces the precedent set by the Supreme Court in Lieu v. SEC, which states that any recovery sought must be closely tied to compensation for fraud victims.

Ripple scandal increases SEC scrutiny

Twitter has become a battleground for debate on this issue. Australian lawyer Bill Morgan humorously quipped about the speed of XRP trading through Ripple’s on-demand liquidity service and questioned the potential for financial harm to institutional investors.Directed by former Ethereum advisor Steven Nelayoff pay attention to the SEC It suggested that agency actions could cause economic harm and touched on the sensitive issue of qualified immunity for agency employees.

Additionally, this dialogue is evolving to scrutinize the SEC’s intentions in inviting companies to discuss their business models, and if the SEC’s true intent is to litigate rather than advise, it may be misleading or misleading. hints at the possibility of

Government decision shakes up SEC enforcement framework

Amid the legal battle, legal commentator Jeremy Hogan says there are signs of hope for Ripple. He argues that XRP buyers who invested at low prices have not yet suffered any financial harm, which could limit Ripple’s legal exposure.

This development comes at a critical juncture as the SEC adjusts the parameters of its enforcement capabilities. Government decisions are changing the perception of regulatory authority, particularly in the crypto space.

Stakeholders are closely monitoring the ramifications of this decision, which could represent a turning point in the regulatory process surrounding cryptocurrencies. As legal interpretations evolve, so will the enforcement and compliance landscape in the fintech space.

Also read: This BRC-20 proposal could be a game changer.Here’s how to do it

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