Important Ripple v SEC Lawsuit Update: Clash Over a Key Witness Testimony

TL;DR

• The SEC contested Ripple’s request to dismiss new expert materials, claiming they are standard calculations from the firm’s own financial records.
• Speculation persists about the lawsuit’s resolution, with predictions of a possible $100 million settlement by this summer, far below the regulator’s initial demands.

The SEC Strikes Again

The trial between Ripple and the US Securities and Exchange Commission (SEC) has already started, with numerous industry participants expecting to see the end of the lengthy legal battle. Instead of a resolution, though, the spat keeps offering additional confrontation.

Most recently, the regulator filed its opposition to Ripple’s motion to strike new expert materials. The endeavor focuses on a testimony from witness Andrea Fox (known as the “Fox Declaration”). Ripple previously argued that the declaration represents an unsolicited expert opinion. 

The SEC repudiated this, describing the process as “standard summary evidence in support of calculations for disgorgement.” 

“It’s not an expert report, does not rely on specialized experience, and does not render any opinions at all, let alone an “expert” one. Nor does it present the testimony of a percipient witness. Rather, it applies basic arithmetic to Ripple’s financial records to streamline the presentation of the evidence to Judge Torres… The court should deny Ripple’s motion,” the SEC insisted. 

The agency also argued that the “Fox Declaration” consists of information derived from documents generated by Ripple itself, including tax returns and financial statements, which can be useful for determining the case’s outcome.

Subsequently, the SEC reminded that Federal Judge Torres already disregarded the same objections the company raises now. 

“As Judge Torres did at summary judgment, the Court here should overrule Ripple’s objection to the Fox Declaration,” the Commission concluded.

Incoming Settlement or a Strategic SEC Move?

The latest development on the Ripple v SEC front was shared on X by James K. Filan, a defense lawyer and former federal prosecutor. Numerous users commenting below the post opined that this is yet another attempt by the regulator to postpone the outcome of the case. 

On the other hand, the American attorney Jeremy Hogan thinks the resolution is just behind the corner, expecting the lawsuit to be officially closed this summer. He also envisioned a $100 million settlement, far less than the $2 billion the SEC sought on Ripple and 10x more than the company suggested. 

“I’m saying that the Judge will order 0 disgorgement but throws the SEC a bone and orders Ripple to pay a $100 million penalty,” Hogan stated.

Those curious to learn more about the lawsuit and its potential impact on XRP’s price and the entire cryptocurrency market, please take a look at our dedicated video below:

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