SEC vs. Ripple: Activity Heated Up Before the May 6 Reply Brief
XRP outperformed the broader crypto market from Monday (April 29) to Saturday (May 4), advancing by 4.08% to $0.5309.
SEC v Ripple case-related activity warranted investor attention as Ripple and the SEC navigated the remedy-related part of the case.
On Monday (April 29), the SEC filed an opposition brief to Ripple’s Motion to Strike.
Ripple filed the Motion to Strike testimony from SEC enforcement accountant Andrea Fox. The SEC included testimony and exhibits (the Fox Declaration) in its remedy-related opening brief. Significantly, the SEC used the testimony and exhibits to argue for an almost $2 billion penalty and an injunction.
The court must decide whether the Fox Declaration introduced new evidence and if Fox is an expert or a summary witness. Ripple has argued that the SEC did not provide her name and testimony during discovery and could not depose her. The SEC contended that Andrea Fox was a summary witness and did not disclose new testimony.
On Thursday, Ripple filed its Motion to Strike-related reply brief. Ripple argued that the Fox Declaration summarized Ripple’s financial statements and introduced new testimony. Significantly, Ripple contested that it did not have the opportunity to depose Andrea Fox.
Various outcomes are possible. Considering the late stage of the case, the court may decline the Motion to Strike but allow Ripple to depose Andrea Fox.
While the Motion to Strike ruling will draw interest, the focal point remains on the outcome. The SEC must file its remedy-related reply brief by Monday (May 6), after which time the court will deliver its ruling on the penalty for breaching US securities laws.
