SEC-Ripple Battle Intensifies: Fierce Legal Clash over Fate of XRP

The SEC and Ripple's ongoing legal battle escalates as the SEC opposes Ripple's motion to strike the Fox Declaration. Ripple, expecting a reply by May 2nd, plans to challenge the Fox Declaration's validity. XRP surges by 6.1%, driven by derivatives buying, with a market cap of $28.4 billion. Despite the volatile crypto market, XRP holds steady above $0.50, signaling resilience and investor confidence.

SEC-Ripple Saga Intensifies: Fierce Legal Battle Over XRP's Fate

The highly anticipated legal showdown between the United States Securities and Exchange Commission (SEC) and Ripple Labs over the classification of XRP has taken a dramatic turn, with the SEC adamantly opposing Ripple's motion to strike the declaration of Andrea Fox.

SEC's Contention: Fox's Declaration Lacks Expertise

The SEC maintains that Fox's declaration, which was submitted as expert evidence in support of Ripple's defense, does not meet the standards of an expert report. The commission argues that Fox's analysis merely presents a summary of Ripple's financial records without providing any specialized insights or expert opinions.

Furthermore, the SEC contends that Fox's declaration does not present the testimony of a percipient witness, as she did not witness or directly participate in the events in question.

Ripple's Defense: SEC's Argument Insufficient

Ripple's legal team has vehemently criticized the SEC's position, asserting that the Fox declaration is sufficient to justify a dismissal of the SEC's substantial penalties and disgorgement claims.

Ripple does not dispute the accuracy of Fox's summary of its financial records but argues that her declaration lacks the necessary expert analysis to support the SEC's claims of pecuniary harm suffered by institutional buyers.

Judge Netburn's Scheduling Order

Judge Sarah Netburn has issued a scheduling order regarding Ripple's motion to strike the Fox declaration and the SEC's new expert materials seeking nearly $2 billion in penalties. Ripple is expected to file its reply to the SEC's opposition by May 2.

Ripple's Deadline: May 2

Ripple has until May 2 to respond to the SEC's opposition, in which it is expected to continue challenging the substance and relevance of the Fox declaration. The company's legal team will likely argue that the declaration fails to establish the necessary legal standards for expert evidence and should be stricken from the record.

Anticipation Surrounding SEC's Response

The SEC is set to file a reply to Ripple's claim that the total penalties, considering Judge Torres' ruling on XRP institutional sales, do not exceed $10 million. This anticipated response adds another layer of intrigue and uncertainty to the ongoing legal proceedings.

XRP Price Action: Buoyed by Buying Interest

Despite the ongoing legal battle, XRP's price has exhibited resilience, surging by over 6.1% in the past 24 hours. The token is currently trading above $0.512, with a market capitalization of $28.4 billion.

Notably, derivatives traders have shown significant buying interest in XRP, with futures open interest exceeding $1.42 billion XRP. This activity suggests that derivatives traders are optimistic about XRP's long-term prospects, even amidst the regulatory uncertainty.

Ripple's Escrow Moves Spark Speculation

Ripple's recent move to lock 800 million XRP in escrow has further fueled speculation within the XRP community. This action, along with the transfer of 60 million XRP to an unknown wallet, has raised questions about Ripple's long-term plans for the token.

Conclusion

The SEC-Ripple legal battle remains a pivotal event for the cryptocurrency industry. The outcome of this case will have far-reaching implications for the regulatory landscape surrounding digital assets.

Ripple has consistently maintained its innocence and has vowed to fight the SEC's allegations. The company's legal team has presented a strong defense, challenging the SEC's evidence and legal arguments.

As the legal proceedings progress, the cryptocurrency community eagerly awaits the upcoming responses from both parties and the ultimate resolution of this groundbreaking case.