- Ripple, the San Francisco-based company, has filed a new letter to strengthen its motion to strike the U.S. Securities and Exchange Commission’s (SEC) expert materials.
- The company’s main argument against the SEC revolves around the untimely disclosure of the expert witness, Andrea Fox.
- Ripple has also opposed the SEC’s motion for remedies, arguing for a reduction in the civil penalty to $10 million.
Ripple continues its legal battle with the SEC, filing a new letter to bolster its motion to strike the SEC’s expert materials. The company argues for a reduction in the civil penalty and questions the SEC’s disclosure of its expert witness.
Ripple Files New Letter Against SEC’s Expert Materials
Ripple has taken a new step in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The company has filed a new letter to strengthen its motion to strike the SEC’s expert materials. The key argument revolves around the untimely disclosure of the expert witness, Andrea Fox, an assistant chief accountant in the regulator’s Division of Enforcement.
Questioning the SEC’s Disclosure of Expert Witness
Ripple has taken issue with the fact that Fox was not disclosed as an expert witness. Instead, she was described as a summary witness by the SEC. In its most recent filing, Ripple states that the SEC has no good explanation as to why Fox’s declaration presents her as an accountant if she is not testifying as an expert. The company asserts that Fox did “much more” than simply copying, pasting, and adding numbers. It also argues that the SEC’s cases do not support the agency’s characterization of a summary witness.
Ripple Opposes SEC’s Motion for Remedies
In addition to challenging the SEC’s expert witness disclosure, Ripple has also filed its opposition to the SEC’s motion for remedies. The company argues that the civil penalty should be reduced to a mere $10 million, a significant decrease from the SEC’s proposed $2 billion penalty. This legal battle dates back to December 2020 when the SEC first took Ripple to court. Despite scoring a partial victory in July, with XRP gaining regulatory clarity in the US, the token has significantly underperformed Bitcoin.
Conclusion
Ripple’s legal battle with the SEC continues to unfold, with the company now challenging the SEC’s expert witness disclosure and arguing for a reduction in the civil penalty. As the case progresses, the outcome could have significant implications for Ripple and the broader crypto market.
