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Crypto: SEC Opposes Ripple's Attempt to Cancel Crucial Testimony

Wed 01 May 2024 ▪ 3 min of reading ▪ by Fenelon L.
Crypto regulation

The Securities and Exchange Commission (SEC) filed a motion in court on Monday to oppose Ripple’s request to strike the statement of Adrea Fox, the SEC’s summary witness. According to the SEC, Ripple incorrectly claims that this statement constitutes undisclosed expert testimony.

Ripple and SEC in court over crypto case

The SEC Challenges Ripple’s Motion

On April 29, the SEC filed an opposition to Ripple’s “motion to strike” regarding the statement of Andrea Fox, the SEC’s summary witness. The Commission argues that Ripple incorrectly claims that this statement constitutes undisclosed expert testimony.

Bill Morgan, a seasoned attorney in the crypto field, has analyzed the SEC’s brief. He points out that the SEC refutes the allegation that Fox’s statement was expert testimony, while noting that Ripple does not contest the accuracy of the financial documents summary presented by the witness.

Furthermore, the SEC argues that Fox did not render an opinion on any monetary damages suffered by certain institutional buyers. According to Morgan, the witness merely reiterated the lawyer’s instructions, with the question of damages being a matter of law.

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The SEC’s Argument Questioned

No matter the outcome of the motion, Morgan believes the SEC’s argument on monetary damages lacks sturdiness. He compares the situation to clients complaining about making profits with Ripple, but to a lesser extent than other investors.

The lawyer also draws a parallel with the case of Sam Bankman-Fried and FTX, criticizing the SEC for failing to protect investors in that case while claiming to defend them against missed gains in the Ripple case.

The SEC claims that its recent brief aims to enlighten the court by presenting calculations summarizing Ripple’s financial records and highlighting the pre-judgment interests accrued on the company’s allegedly illicit gains.

In short, this new legal episode illustrates the complexity of the Ripple-SEC litigation and the major issues it raises for the crypto ecosystem. Beyond technical arguments, it highlights the challenges of regulating an industry in full expansion. The outcome of this legal battle will be decisive for the future of Ripple as well as for the cryptocurrencies at large.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.