The Biggest Developments in the Ripple vs. SEC Trial: Two Weeks Roundup

TL;DR

The legal standoff between Ripple and the SEC is intensifying, with recent filings focusing on whether a key witness’ statement is standard evidence or unsolicited expert testimony. As both sides await a court decision, speculation is rife about a possible settlement this summer. Shares of the SEC

The legal case between Ripple and the US Securities and Exchange Commission (SEC), which dates back to December 2020, has intensified in recent weeks. An important reason for the numerous actions by both sides is the start of the court process on April 23.

Shortly after that date, Judge Sarah Netburn entered a new scheduling order focused on the appeals motion and entry of final judgment.

On April 29, the regulator complied with the rules by filing its opposition to Ripple’s motion to strike new expert materials. The effort centered on the testimony of key witness Andrea Fox (known as the “Fox Statement”).

Ripple previously argued that the statement represents an unsolicited expert opinion, while the SEC described the process as “standard summary evidence in support of calculations for dumping.”

“It is not an expert report, it is not based on specialized experience, and it does not give any opinion, let alone an “expert”. Nor does he present the testimony of a perceptive witness. Rather, it applies basic arithmetic to Ripple’s financial records to expedite the presentation of evidence to Judge Torres… The court should deny Ripple’s motion,” the agency insisted.

In addition, the Commission stated that the “Fox Statement” consists of data derived from documents generated by Ripple itself, including tax returns and financial statements, which may be useful in determining the outcome of the lawsuit.

Ripple strikes back

A few days later, the company submitted a letter in further support of its initial application. He stated that the watchdog failed to demonstrate that the statement is summary evidence rather than expert testimony:

“Fox is an expert because she purports to use technical or specialized knowledge to help the trier of fact understand the evidence or determine a fact in issue. She does not simply apply basic arithmetic to Ripple’s financial records, as the SEC contends.”

Ripple went further, suggesting that even if Andrea Fox could qualify as a summary witness, the Commission did not disclose her before the end of the discovery process.

Other news and a possible liquidation

Earlier this week, the SEC filed its response brief and supporting exhibits under seal. The redacted, public version of the information was released a day later.

According to US Attorney Jeremy Hogan, this action marked the end of the briefs phase. He claimed the regulator “went out with a whimper here”, adding that the legal battle has entered a stage with less news, and both sides must await the judge’s decision.

Hogan previously predicted the lawsuit could be officially closed this summer after a $100 million settlement. This is far less than the $2 billion penalty the SEC was seeking and far more than the $10 million Ripple agreed to pay.

Those who want to dig deeper and learn about the specifics of the case and its potential impact on the price of XRP, feel free to watch our video below:

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