Ripple (XRP) is currently embroiled in a challenging legal battle with the United States Securities and Exchange Commission (SEC). In response to Ripple’s request to reject new expert materials, the SEC has asked the court to dismiss the testimony of SEC accountant Andrea Fox. Both parties are now discussing the status of Fox’s testimony and whether it should be considered a summary or expert testimony.
The focus of the case has shifted towards the comments made by Andrea Fox regarding institutional sales of XRP. XRP holders are eagerly awaiting the court’s update in May 2024 to decide on the outcome of the case.
The Ripple-SEC legal clash is closely watched in the cryptocurrency world. Both Ripple and the SEC are striving to present strong evidence to support their arguments. The latest developments between the parties do not provide a clear conclusion on who is in the right, but the outcome of the case will likely serve as an important guide for future relations between the cryptocurrency market and regulatory bodies.
In a recent filing on April 29, the SEC responded to Ripple’s request. The SEC had previously requested Ripple’s financial statements and details related to XRP’s institutional sales, taking a significant step forward. However, there has been an unexpected twist.
After reviewing Ripple’s financial statements, the SEC assigned Deputy Chief Accountant Andrea Fox to provide a summary of the findings. Ripple’s lawyers described this move as “undisclosed expert testimony.” However, the SEC argues that it is simply a summary prepared with basic arithmetic.
Ripple filed a petition on April 23 objecting to this summary. In its response on Monday, the SEC claimed that Ripple’s claims were baseless. The regulatory body called for the rejection of Ripple’s request and confirmation of the summary’s accuracy. While the SEC emphasized that Fox’s summary was valid evidence, it pointed out that Ripple’s ODL did not address potential damages to its institutional clients. It also stated that material damage is a legal matter that should be resolved in court.
Ripple, as the defendant, is challenging the SEC’s claims for a $2 billion penalty and compensation, arguing that the penalty should not exceed $10 million. However, Judge Sarah Netburn is expected to make a decision on the demands of both the SEC and Ripple in May 2024. Meanwhile, the price of the XRP coin is currently being impacted by these developments, trading at $0.49 at the time of writing.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies carry a high level of volatility and risk and should conduct their own research.
