Ripple filed a plea to counter the testimony of the Security and Exchange Commission’s accountant. It faced stiff opposition from the Securities and Exchange Commission, and its accountant was regarded as a summary witness. Ripple expressed its frank view that it recognized that SEC accountant Andrea Fox was just a summary witness.
The SEC had previously raised serious accusations against Ripple for raising $1.3 billion through an unregistered digital security offering. The crypto industry will have a tough time if the SEC proceeds with punitive disgorgement and an injunction banning the fintech business from selling XRP to American investors.
The legal tussle between the Securities and Exchange Commission and Ripple has put the crypto investors in a dilemma. The American regulatory authority has testified in court that the statement comprises undisclosed expert testimony. Ripple can file a counter to the SEC directive until 2nd May 2024, and the SEC can submit a rebuttal until 6th Ma 2024. The crypto market will have an adverse impact from the legal fight between SEC and Ripple irrespective of the outcome of the legal tussle, whether positive or negative.
Industry insiders reveal that the legal fight has been intensified with the directive of the Securities and Exchange Commission. The legal clash between the American financial body and Ripple received global investor attention. Ripple said that the report by the SEC accountant is neither an expert report nor does it depend on specialized experience. They stated that the opposition brief applies basic arithmetic skills to Ripple’s financial records to streamline the presentation of the evidence. The Securities and Exchange Commission must disclose expert witness identity, exhibits, and testimonies during discovery.
The outcome of the case will have more significance and implications in the corridors of the global crypto marketplace. The Securities and Exchange Commission plans to file a plea against the programmatic sales of XRP. Another court directive that considers crypto security will give the regulatory authority more justification in imposing regulations on the American crypto market. It is to be recalled that Coinbase had earlier filed a motion to seek an appeal against the court ruling. XRP sent bearish price signals after the continuing legal encounter between two high-profile stakeholders.
Ripple is known as a fintech establishment offering cheap and fast clearance of cross-border money transfers. XRP transactions can be settled and cleared in real time in the RippleNet network created by Ripple. The SEC complaint states that Ripple had raised funds by selling XRP tokens as security offerings unregistered to investors in America and worldwide.
Ripple offered trillions of XRP as an exchange for non cash services like labor and market making. The petition alleges that top executives at Ripple had engaged in personal, unregistered XRP financial transactions amounting to $600 million. There are serious charges and allegations of orchestrating and promoting XRP sales against Ripple. The lawsuit also alleged that the defendants failed to register their XRP sales and XRP offers.