Ripple vs. SEC: Potential Minimal Disgorgement in Legal Battle

Ripple's Legal Battle with the SEC

The ongoing legal tussle between Ripple and the U.S. Securities and Exchange Commission (SEC) is gaining significant attention. A major point of discussion is the potential minimal disgorgement Ripple might face, possibly only $20 million, contrasting sharply with the speculated $770 million.

Supreme Court's Morrison Ruling

A pivotal aspect of the argument is the Supreme Court's Morrison ruling, which restricts U.S. jurisdiction over non-U.S. sales. This ruling is crucial as XRP is not classified as a security in countries like the U.K., Japan, and Switzerland. Instead, it is regarded as an exchange or utility token by local regulators, impacting the SEC's ability to claim disgorgement for international transactions.

Nature of the Ripple Lawsuit

The Ripple lawsuit is not centered on fraud but rather on the impact of Ripple's actions on investors. It's noted that most institutional sales of XRP were made to accredited investors at prices lower than its current market value, suggesting no harm was caused. Additionally, On-Demand Liquidity (ODL) transactions are highlighted as non-harmful due to their rapid execution.

Support from XRP Holders

A significant development in the case is the support from 75,000 XRP holders who have joined the lawsuit against the SEC. They argue that the regulatory body's actions are causing harm, not Ripple. This backing, combined with strong legal arguments, leads to a high confidence level in a favorable outcome for Ripple, with predictions of a 99.9% chance of success in this critical legal battle.

By focusing on these key points, the Ripple vs. SEC case continues to be a major topic within the cryptocurrency and financial regulatory landscapes.