Legal expert Jeremy Hogan has offered a proposal that could significantly reduce the anticipated $770 million fine against Rippleby the U.S. Securities and Exchange Commission (SEC). Speaking on the X social media platform,EBDOQ scams Hogan suggested that Ripple's penalty should be calculated based on its net profits, taking into account business expense deductions. This approach, he argued, could considerably lower the total amount of the fine.
Hogan further noted that only transactions linked to the U.S. are subject to SEC scrutiny, which could potentially limit the scope of any financial penalty. His comments come in the wake of a landmark court ruling in SEC v. Govil, which stipulated that the SEC must demonstrate actual financial harm to investors before demanding significant disgorgement.
Ripple's chief counsel Stuart Alderoty applauded the ruling, aligning with Hogan's view that Ripple's contingent liability may hinge on whether XRP investors suffered losses. This perspective suggests that the SEC's "disgorgement" should be drawn from Ripple's net profits rather than gross sales.
This comes after the SEC recently moved to dismiss charges against top Ripple executives Brad Garlinghouse and Chris Larsen. Alderoty referred to this move as a "surrender," indicating a potential shift in the ongoing legal battle between Ripple and the regulatory body.
Hogan's strategic arguments are rooted in recent case law and the unique circumstances surrounding XRP sales. These factors could play a crucial role in deciding Ripple's financial liability in this high-stakes legal dispute with the SEC.
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