Experts concerned after Ripple loses in lawsuit against SEC

Two well-known lawyers to expect that Ripple Labs will lose the motion it filed against the Securities and Exchange Commission (SEC).

This motion seeks to invalidate certain expert evidence, which would help Ripple in their case. In addition, the company has also filed a motion to significantly reduce the fine demanded by the SEC.

Ripple’s latest motion concerns the SEC’s use of a statement from Andrea Fox, with Ripple challenging Fox’s status as an expert. The SEC had introduced Fox’s statement in March as part of her opening argument and classifies her as a summary witness, meaning she summarizes existing facts to help the judge better understand Ripple’s financials.

Ripple argues that the SEC should have revealed Fox’s identity earlier during the discovery process. According to Ripple, even if Fox is considered a summary witness, based on agreements and court-established scheduling, the SEC should have revealed her identity before the end of the discovery phase.

Will Ripple lose the motion?

Legal experts, including Bill Morgan and Jeremy Hogan, are divided on the outcome of the dispute between Ripple and the SEC. They expect that Ripple will likely lose their motion, which could be a setback for the blockchain company in the further course of the case. A court decision is expected soon, and the SEC should respond by or on May 6.

While the decisions on these motions may have a limited impact on the entire lawsuit, there is a much more important issue surrounding the penalty sought by the SEC. The authority is seeking a fine of $2 billion, while Ripple is arguing for a significantly lower fine of $10 million.

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