The Ripple vs. SEC showdown is getting hotter by the day. Ripple is escalating its fight against the SEC by challenging expert testimony and raising concerns about disclosing financial data to the public. One sticking point is the SEC’s classification of the “Fox Declaration” as standard evidence, which Ripple argues is expert testimony with significant legal implications.
This legal showdown will have major implications for the future of cryptocurrency and could determine the fate of XRP, Ripple’s native token.
A Witness Under Scrutiny: The “Fox Declaration”
A key figure in this fight is Ashley Prosper, a legal commentator who has been following the case closely. She has highlighted a specific issue that is currently preventing Judge Analisa Torres from issuing her final verdict: the classification of Andrea Fox’s declaration.
So, What’s the Fox Dilemma?
In April, Ripple filed a motion to exclude Fox’s declaration, which the SEC submitted to justify its remedies demands. Ripple argued that Fox’s declaration made her an expert witness, which should have been produced during the discovery phase of remedies. Since the declaration was not issued during discovery, Ripple sought the court’s exclusion of the testimony. The SEC, however, claimed that Fox was a summary witness who only summarized existing facts to help the judge understand Ripple’s financial records.
Prosper shed light on a crucial insight: If Fox is considered an expert witness, it could open up a “can of worms” that might further delay the case. However, Magistrate Netburn typically takes about a month to decide small motions, so her ruling could come at any moment. Nonetheless, Judge Torres’ final verdict could be delayed if any party challenges Netburn’s decision.
Waiting for the Magistrate’s Decision
Ashley Prosper hopes the court will ignore Fox’s declaration if she is declared an expert witness but thinks this is unlikely. Pro-XRP lawyers Bill Morgan and Jeremy Hogan agree, suggesting that even if Fox is seen as an expert, her testimony will stay, but Ripple will get to question her. Fox’s statement is vital for the final decision and could influence the penalty against Ripple.
Therefore, Judge Torres will likely wait for Magistrate Netburn’s ruling before making her final judgment.
We’re At the Endgame Now: Any Hope for Ripple?
The next submissions are likely the last ones after Magistrate Netburn decides on the Fox declaration. If the Judge ignores Fox’s declaration, it could restrict the SEC’s options for advocating certain penalties.
The conflict began in late 2020 when the SEC accused Ripple of violating securities laws through XRP sales. While a partial victory came in July with a ruling on XRP sales on exchanges, the dispute over institutional sales persists, prolonging the legal battle.
This case has major implications for the future of crypto. Where do you stand?
