SEC vs. Ripple: Activity heats up ahead of May 6 response brief
XRP outperformed the broader cryptocurrency market from Monday (April 29) to Saturday (May 4), rising 4.08% to $0.5309.
Activities related to SEC v. Ripple were worthy of investor attention as Ripple and the SEC navigated the relief-related portions of the case.
On Monday (April 29), the SEC filed a brief in opposition to Ripple's strike motion.
Ripple submitted testimony from SEC Executive Accountant Andrea Fox on the strike motion. The SEC included testimony and evidence (the Fox Declaration) in its relief-related opening briefs. Importantly, the SEC used testimony and evidence to assert approximately $2 billion in fines and injunctions.
The court will need to determine whether Fox's declaration introduces new evidence and whether Fox is an expert or summary witness. Ripple argued that because the SEC did not provide her name and testimony during her discovery, she could not remove her from office. The SEC argued that Andrea Fox was a summary witness and that she disclosed no new testimony.
On Thursday, Ripple filed a response brief related to the strike motion. Ripple claimed that the Fox declaration summarized Ripple's financial statements and introduced new testimony. Importantly, Ripple claimed that there was no opportunity to fire Andrea Fox.
Various outcomes are possible. Given the late stage of the case, the court may deny the motion to strike, but may allow Ripple to remove Andrea Fox from office.
While there will be interest in the ruling on the strike motion, the focus remains on the outcome. The SEC has until Monday (May 6) to file a response brief related to the relief, after which the court will rule on penalties for violating U.S. securities laws.
