Ripple (XRP), is currently engaged in a tough legal battle under the strict supervision of the United States Securities and Exchange Commission (SEC). The SEC responded on Monday to a request to reject new expert materials from Ripple, asking the court to dismiss the testimony of SEC accountant Andrea Fox. The US regulatory body had previously submitted new materials, which Ripple had characterized as expert testimony. Now, both parties are debating the status of Fox’s testimony, whether it should be considered a summary or expert testimony.
Where is the Ripple SEC Case Heading?
The focus of the case has shifted towards the nature of comments by Andrea Fox regarding institutional sales of XRP. XRP holders are anxiously waiting for the court’s next update in May 2024 to decide on the case.
Ripple‘s legal clash with the SEC is being closely watched in the cryptocurrency world. Both Ripple and the SEC are trying to present the strongest evidence to support their arguments. The latest developments between the parties do not provide a clear conclusion on who is right, but the outcome of the case will likely serve as an important guide for future relations between the cryptocurrency market and regulatory bodies.
SEC Responds to Ripple’s Request in April 29 Filing
One of the most notable recent events in the cryptocurrency world, the SEC-Ripple case continues with new developments. The SEC had requested Ripple’s financial statements and details related to XRP’s institutional sales, taking a significant step following these requests. However, things have taken an unexpected turn.
After reviewing Ripple’s financial statements, the regulatory body assigned Deputy Chief Accountant Andrea Fox to present a summary of the findings. This move was described by Ripple’s lawyers as “undisclosed expert testimony”. However, the SEC defends that it is merely a summary prepared with basic arithmetic.
Ripple objected to this summary by filing a petition on April 23. However, in its response on Monday, the SEC stated that Ripple’s claims were unfounded. 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 noted that Ripple’s ODL did not address potential damages to its institutional clients. Additionally, it stated that material damage is a legal matter that should be addressed in court.
Ripple, the defendant, is contesting 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 SEC and Ripple in May 2024. Meanwhile, the XRP coin is currently being affected by these developments, showing a decrease in price, trading at $0.49 at the time of writing.
