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In the ongoing legal dispute between Ripple and the United States Securities and Exchange Commission (SEC), which has a significant impact on the price of XRP, the two sides are at odds over whether the chief's testimony The SEC's deputy accountant, Andrea Fox, should be cleared. Ripple recently submitted a letter supporting its motion to reject new expert testimony. They argue that Fox's statements are considered expert testimony and should have been presented earlier in the cure discovery phase. The SEC plans to respond by May 6, and the court is expected to issue its decision shortly thereafter.
The ongoing battle between Ripple and SEC
The recent SEC filing contained remarks from Deputy Chief Accountant Andrea Fox regarding Ripple's financial statements. Ripple called the remarks “new expert material” and argued that they should have been presented earlier during the remedy discovery phase of the lawsuit, which has now closed.
In response, the SEC countered that Fox's comments were not expert testimony but rather “facts and some basic calculations.” As a result, the SEC asked the court to deny Ripple's motion to exclude these new expert documents from the case.
Read more: Ripple v. SEC Lawsuit Update: Ripple Asks Court to Dismiss SEC Expert’s Testimony
Yesterday, Ripple submitted a letter in support of its motion, arguing that statements made by SEC Deputy Chief Accountant Andrea Fox constitute expert testimony. The letter explains that Fox's analysis, which relies on its accounting expertise to evaluate Ripple's financial records, should have been disclosed during the earlier discovery phase of the lawsuit. Ripple's letter states that whether Fox is considered an expert or a summary witness, the SEC was obligated to reveal this information before the end of this phase.
The SEC is expected to respond by May 6. Next, the court is expected to make a decision regarding the sanctions and fines Ripple faces for its institutional sales of XRP. The SEC proposed fines totaling $2 billion, while Ripple suggested settling for $10 million.
What to expect on May 6?
The SEC is expected to respond to Ripple's latest arguments on May 6. Observers believe the SEC will continue to push for restitution 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 testimony indicates that it is seeking to solidify its case. These next submissions will likely be the last before Judge Analisa Torres decides on sanctions for Ripple's sales of XRP to institutional buyers.
Also Read: Ripple vs SEC: Ripple May Lose in Ongoing XRP Lawsuit; here's why
If Ripple succeeds in challenging Fox's statement, it could narrow the SEC's options for advocating certain sanctions.
The lawsuit began in late 2020 when the SEC accused Ripple of violating securities laws through its sales of XRP. In July, Ripple won a partial victory when a judge determined that XRP sales on exchanges did not constitute securities transactions. However, the dispute over sales to institutional buyers is still ongoing.
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