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In the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC), which has a major impact on the price of XRP, both parties should allow SEC Chief Accountant Andrea Fox to testify. There is a conflict over whether or not to do so. Ripple recently filed a letter supporting a motion to dismiss new expert evidence. They argue that Fox’s statements qualified as expert testimony and should have been introduced early in the remedy discovery phase. The SEC is expected to respond by May 6, and the court is expected to rule shortly thereafter.
The ongoing battle between Ripple and SEC
Recent SEC filings include statements from Assistant Chief Accountant Andrea Fox regarding Ripple’s financial statements. Ripple called these statements “new expert material” and argued that they should have been presented earlier during the remedy discovery phase of the now-closed litigation.
The SEC countered that Fox’s comments were not expert testimony but “facts and some basic arithmetic.” As a result, the SEC asked the court to deny Ripple’s motion to exclude these new expert materials from the lawsuit.
read more: Ripple v. SEC litigation update: Ripple asks court to dismiss SEC expert evidence
Yesterday, Ripple filed a letter in support of the motion, arguing that statements made by Andrea Fox, the SEC’s assistant chief accountant, qualify as expert testimony. The letter explains that the analysis, which used Fox’s accounting expertise to evaluate Ripple’s financial records, should have been disclosed during the early relief discovery phase of the lawsuit. Ripple’s letter states that the SEC is obligated to reveal this information before the end of that step, regardless of whether Fox is considered an expert or a summary witness. There is.
The SEC is expected to respond by May 6th. As a result, the court will decide on penalties and fines that Ripple may impose for selling XRP to institutional investors. The SEC is proposing a total fine of $2 billion, but Ripple is proposing a $10 million settlement.
The SEC is scheduled to respond to Ripple’s latest allegations on May 6th. Observers believe the SEC will continue to pursue disgorgement and seek a court order to prevent Ripple from selling XRP to institutional investors in the future. The SEC’s recent challenge to Ripple’s request to exclude new expert evidence shows they are trying to solidify their case. These next filings are likely to be the last before Judge Annalisa Torres decides on penalties for Ripple’s sales of XRP to institutional investors.
Also read: Ripple vs. SEC: Ripple may lose in ongoing XRP litigation.The reason is as follows
If Ripple is successful in challenging Fox’s declaration, it could limit the SEC’s options to assert specific penalties.
The case began in late 2020 when the SEC accused Ripple of violating securities laws through its XRP sales. In July, Ripple achieved a partial victory when a judge ruled that XRP sales on exchanges do not qualify as securities trading. However, disputes over sales to institutional investors continue.
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