The SEC vs. Ripple case is still impacting the market performance of XRP. Recently, a positive outlook surrounding Ripple helped XRP rally 7.41%.
The crypto closed the week at an 18.9% hike, reaching 0.6611 dollars. The optimism is fueling traders to invest in XRP despite no official updates being surfacing.
Notably, Jeremy Hogan, an attorney and partner at Hogan and Hogan, discussed the case. Hogan stated that the SEC aims for a 770 million dollar penalty against XRP for illegal selling to institutional investors.
The law allows the SEC to seek penalties, interest, and disgorgement. The topic of disgorgement came about after the Court deemed the XRP sales to institutional sales were illegal.
According to Hogan, Ripple can make two arguments against it. The first (the SEC vs. Liu 2020) states that disgorgement is an equitable remedy. Thus, it should be fair, meaning that in Ripple’s context, it should be the NET profit violations, not Gross. It will allow Ripple to deduct business expenditures from the total.
The second argument revolves around the 2nd DCA. It states that the disgorgement amount must be awarded to the victims. Victims are entities or individuals who lost funds on an investment. Therefore, if the investors made a profit on XRP, there is disgorgement.
The SEC must provide a nexus between the XRP buyers and the US. If Ripple sold the tokens to a foreign investment company without any ties to the US, the case falls outside of the SEC’s jurisdiction.
As expected, the discussion sparked interest among the investors. Many of them reassessed their portfolios after going through XRP price prediction to get detailed insights into future sentiment. The sentiment alone boosted the price of XRP to establish a bullish rally.
The token is currently trading at $0.6724, an 8.26% boost in the past 24 hours. In the past 7 days, XRP has witnessed a growth of 22.07%, which might surge even further.