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Stuart Alderoty, Ripple's chief lawyer, took to the X social media platform to <a href="https://twitter.com/s_alderoty/status/1720491980910714923" rel="noopener noreferrer nofollow">celebrate</a> the U.S. Securities and Exchange Commission's most recent loss. &nbsp;
Highlighting the 2nd Circuit's decision in SEC v. Govil, Alderoty stressed that the SEC cannot demand a substantial disgorgement award without first substantiating that investors suffered tangible financial setbacks.&nbsp;
This development, succinctly summarized as "no harm, no foul," may have broader implications for Ripple's ongoing legal skirmish with the SEC.
<h2 id="what-it-means-for-ripple">What it means for Ripple&nbsp;</h2>
The ripple effect of the recent court ruling has been palpable, with many industry observers speculating on its potential impact on the SEC-Ripple saga.
Legal analyst Jeremy Hogan <a href="https://twitter.com/attorneyjeremy1/status/1720498816644739217" rel="noopener noreferrer nofollow">has argued</a> that Ripple's liability hinges on whether XRP investors actually incurred monetary losses.&nbsp;
Simply put, if you bought XRP at a price lower than its current market value, Ripple isn't on the hook for any damages.&nbsp;
If the majority of <a href="https://u.today/xrp-20-surge-puts-asset-in-dangerous-position" rel="noopener noreferrer nofollow">XRP</a> holders haven't faced financial losses, the SEC might find itself cornered, potentially leading to a more favorable settlement for Ripple.
<h2 id="penalty-amount-in-focus">Penalty amount in focus&nbsp;</h2>
There's been a lot of talk about how much money the SEC wants Ripple to pay. Commentator Yassin Mobarak <a href="https://twitter.com/Dizer_YM/status/1720495465299382704" rel="noopener noreferrer nofollow">opined</a> that the SEC might find it challenging to enforce Ripple to pay the rumored $770 million penalty for institutional sales if investors haven't been adversely impacted.
Prior to that, lawyer John Deaton opined Ripple could lower this big penalty amount. He mentioned a past case where <a href="https://u.today/paypal-v-sec-pro-xrp-lawyer-and-sec-veteran-argue-over-paypal-pyusd-stablecoins-future" rel="noopener noreferrer nofollow">the SEC</a> asked for $23 million but only got $130,000.&nbsp;
Deaton anticipates a similar fate for the Ripple case, meaning that the San Francisco-based company will likely successfully negotiate the fine down by a significant margin.

Ripple Celebrates Another SEC Loss

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