The tussle between the U.S. Securities and Exchange Commission and Ripple Labs continues, with parties now arguing over the penalty Ripple should pay the SEC for violating securities law in offering XRP to institutional investors.
Ripple argued the SEC violated the court deadline as it included an expert declaration in the remedies-related brief after the discovery deadline, filed in a motion to strike the declaration of Andrea Fox (Fox Declaration). The motion is crucial for Fox’s statement on whether institutional investors suffered pecuniary harm.
Ripple filed its reply to the SEC’s opposition in which the SEC claimed Fox Declaration is indeed a permissible summary evidence under the law and Fox just answered counsels’ questions on institutional buyers, pecuniary harm, and discounts to some institutional investors.
Pro-XRP lawyer Bill Morgan said, “I think Ripple will lose the motion.” He contends that the judge will accept Fox gave some expert evidence and ask Ripple’s lawyers to depose her.
He added that the SEC’s reply brief on remedies is the next important filing in the lawsuit. If the SEC agrees with Ripple’s belief that $10 million in penalties are fair due to Govil case and other reasons, which is highly unlikely, negotiations can begin on penalties. If not, the parties will continue to argue over remedies. “Judges don’t accept offers made by a party” added Morgan.
Attorney Jeremy Hogan also believes Ripple will lose the motion and proceed to depose, saying “The hardest thing to do on CT is say that you think the SEC will win a motion.” He claims the judge will allow Ripple to depose her even if Court finds the witness is an “expert”.
Read More: Whale Shifts 60M XRP As Ripple Files Its Motion, What’s Next?
The recent developments in the XRP lawsuit triggered an uptick in XRP price as whales and retail investors buy the dip. While the market trading volumes dip on options expiry, traders remain bullish on a massive recovery in XRP due to a recent breakout.
XRP price jumped more than 1% in the last 24 hours, with the price currently trading above $0.521. The 24-hour low and high are $0.512 and $0.524, respectively. Furthermore, trading volume has increased recently amid a rise in interest among traders.
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