“no harm, no foul” approach

When the courts say no investor loss .. the SEC itself has caused losses due to its wild western hostage tactics on cryptocurrency to favor the traditional financial players. They successfully broke the market for the past few years to ensure that the old players get in with ETFs and don't miss the boat. How does the court provide support to the investors there ? Sue Gensler for the games he has played constantly with investor funds and sentiment for the last so many years. XRP could have been in the 100s of dollars versus the cents it plays in because of one man's greed funded by players like Blackrock and Grayscale.

The crux of the lawsuit lies in the SEC’s claim that Ripple sold unregistered securities in the form of XRP, its native cryptocurrency token. The SEC seeks a hefty $2 billion in disgorgement (return of improperly obtained funds) and penalties from Ripple.

Here’s where things get interesting. In a separate case, SEC vs Govil, the Second Circuit Court of Appeals recently ruled that the SEC cannot pursue disgorgement unless investors can prove they suffered actual financial losses. This “no harm, no foul” approach throws a wrench into the SEC’s strategy in the Ripple case.