24/7 Cryptocurrency News

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

Ripple's Chief Legal Officer Alderoty highlights the impact of the Second Circuit's new SEC disgorgement rules.
Published by
Ripple’s Chief Legal Eyes SEC Power Limit in Govil Ruling

The United States Court of Appeals for the Second Circuit has recently defined new perimeters for the Securities and Exchange Commission’s (SEC) ability to pursue disgorgement, directly impacting regulatory enforcement scope. Ripple’s Chief Legal Officer, Stuart Alderoty, has pinpointed this ruling as a significant moment, particularly as it plays against the backdrop of Ripple’s ongoing legal challenges with the SEC.

The Jignesh Govil case has taken center stage, with the courts requiring the SEC to establish concrete evidence of financial harm to investors before seeking disgorgement. This reinforces the precedent set by the Supreme Court in Liu v. SEC, mandating that any recovery sought must be closely tied to compensating fraud victims.

Advertisement

SEC Scrutiny Intensifies in Ripple Case

Twitter has served as a battleground for debate on this issue. Australian lawyer Bill Morgan humorously quips about XRP transactions’ speed through Ripple’s On-Demand Liquidity service, questioning the possibility of financial harm to institutional investors. Steven Nerayoff, a former Ethereum adviser, directs attention to the SEC’s methods, suggesting that agency actions could inflict financial harm, touching on the delicate issue of agency officials’ qualified immunity.

Furthermore, the dialogue has evolved to scrutinize the SEC’s intentions when inviting companies to discuss their business models, hinting at potential misleading conduct should the agency’s real intent be to litigate rather than advise.

Advertisement

Govil Decision Rattles SEC’s Enforcement Framework

Amid the legal tussle, Jeremy Hogan, a legal commentator, posits a silver lining for Ripple. He argues that XRP purchasers who invested at lower prices have yet to encounter financial harm, which could limit Ripple’s legal exposure.

This development marks a crucial juncture for the SEC as it navigates the parameters of its enforcement capabilities. The Govil decision is reshaping perceptions of regulatory powers, particularly within the  cryptocurrency sphere.

Stakeholders are closely monitoring the ripple effect of this decision, which could signify a turning point in regulatory proceedings involving cryptocurrencies. As legal interpretations evolve, so too does the landscape of enforcement and compliance in the fintech sector.

Read Also: This BRC-20 Proposal Can be a Game Changer, Here’s How

Advertisement

Share
Maxwell Mutuma

Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Altcoin News

Whale Dumps Massive $55 Million in XRP to Ripple as Coin Falls Below $3?

A whale alert regarding a massive $55 million XRP transfer to a Ripple wallet sparked…

October 6, 2025
  • 24/7 Cryptocurrency News

Aster Token Crashes 10% On DEX Integrity Issues Ahead of Airdrop, What’s Happening?

BNB-based decentralized exchange (DEX) Aster has come into the limelight recently, this time facing integrity…

October 6, 2025
  • Bitcoin News

Spot Bitcoin ETFs Record 2nd Best Weekly Inflows Ever, Bloomberg Analysts Bullish

Spot Bitcoin ETFs saw nearly $3.3 billion in net inflows last week, the 2nd largest…

October 6, 2025
  • 24/7 Cryptocurrency News

Michael Saylor Says “No New Orange Dots” Pausing Bitcoin Buys as Holdings Hit Record $79B

Michael Saylor hinted that Strategy would not be making its routine Bitcoin purchase this week.…

October 5, 2025
  • 24/7 Cryptocurrency News

Experts Turn Bullish on Pudgy Penguins as PENGU Leads Meme Coin Buys on Solana

Crypto experts have begun to make bullish projections for Pudgy Penguins’ native token, PENGU. This…

October 5, 2025
  • 24/7 Cryptocurrency News

ASTER to Launch Phase 2 Airdrop on October 10 as Open Interest Tops $5B in Two Weeks

ASTER has announced that the roadmap for its second airdrop phase is set to begin…

October 5, 2025