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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Apr 30, 2024 10:55 UTC
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Ripple vs. SEC: Legal Analysts Debate “Fox” Witness Motion Verdict
Ripple wants to exclude some SEC evidence from the lawsuit, and the judge will decide by May 2nd.
Legal experts have mixed opinions on the case. Some think the SEC's case is weak, while others believe Ripple's attempt to exclude evidence is pointless.
The ongoing lawsuit is hurting the price of XRP.
The ongoing clash between Ripple and the U.S. Securities and Exchange Commission (SEC) has entered a crucial phase as it finally reaches trial after over three years of legal wrangling. Ripple Labs and the SEC are currently embroiled in a dispute over Ripple’s motion to strike down the Andrea Fox declaration and its supporting evidence.
What is to come? We’ve broken it down for you.
The Declaration Dilemma
At the core of the disagreement is the Andrea Fox declaration, which has become a focal point of contention. The SEC argues that Fox’s declaration is merely a summary report rather than an expert analysis of the XRP institutional sales dispute. They claim it falls within the bounds of acceptable summary evidence, similar to past rulings by Judge Torres on the Ferrante Declaration, without violating federal civil procedure rules.
Ripple is expected to respond to the SEC’s argument by May 2. There’s speculation that Ripple might argue Fox’s status as an expert witness, potentially changing the course of the proceedings. Notably, Fox’s affiliation with the SEC Enforcement Division adds complexity to her role in the case.
Legal Experts Weigh In
Legal experts have offered differing opinions on the matter. Bill Morgan, a pro-XRP lawyer, questions the SEC’s argument regarding the alleged harm suffered by institutional buyers, suggesting it may not hold water for disgorgement claims.
On the other hand, Fred Rispoli wonders why Ripple filed its motion at this particular juncture, suggesting both sides have strong legal grounds.
Marc Fagel, a former SEC securities lawyer, sides with the SEC, dismissing Ripple’s move as futile. While Fagel predicts the court’s punishment may be less severe than Ripple’s hefty $2 billion demand, he refrains from specifying an appropriate fine. Anticipating a lengthy legal battle, Fagel believes both parties will file appeals in the coming months, possibly escalating the case to the Second Circuit next year.
James Farrell, a former SEC lawyer, points out that non-attorneys often create summary charts to avoid privilege issues, suggesting Ripple could have pursued alternative methods to obtain similar information. Farrell criticizes Ripple’s failure to disclose its previous unsuccessful motion before Judge Netburn, viewing it as a credibility setback.
Market Implications for XRP
Amidst the legal drama, XRP’s performance is under scrutiny. Despite recent price fluctuations, XRP saw a modest increase today, trading at $0.513—an uptick of 2.32% in the last 24 hours, despite enduring a 7% dip over the past week and an 18% slump in the last 30 days.
At the same time, a significant transfer of 75 million XRP tokens has sparked speculation among investors. Whale Alert flagged three substantial transactions, including sizable transfers to centralized exchanges and a noteworthy sum received from Upbit.
These transactions, reflecting increased buying and selling activity, have left investors uncertain about XRP’s future trajectory.
The battle for XRP’s future is far from over. Will Ripple weather the storm?
Also Check Out : Ripple to Unlock 1Billion XRP on 1st May, Is XRP Price To Drop?
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