After more than three years of exchanging legal blows, the showdown between Ripple and the U.S. Securities and Exchange Commission (SEC) has finally reached the trial stage. In the latest update, Ripple Labs and the SEC, both parties have presented heavy arguments regarding Ripple’s motion to strike the Andrea Fox (Fox Declaration) declaration and its supporting exhibits.

The SEC argues that the Fox Declaration is merely a summary report, not an expert one on the XRP institutional sales dispute. They argue that it falls within permissible summary evidence under the law, akin to the Ferrante Declaration previously allowed by Judge Torres, without violating federal rules of civil procedure.

Ripple has to reply to the SEC’s argument by May 2. They might say Fox is an expert witness, which could change things. Fox works for the SEC Enforcement Division, which adds to the discussion about her role.

Legal Experts in Split

Legal experts have weighed in on the matter, with differing opinions. Pro-XRP lawyer Bill Morgan highlights the weakness of the SEC’s argument regarding the pecuniary harm suffered by some institutional buyers, suggesting it may not hold up well for disgorgement claims.

However, Fred Rispoli questions why Ripple filed the move at this time and thinks that both sides have case law to back up their claims. Marc Fagel, a former securities lawyer for the SEC, agrees with the SEC’s point of view and thinks Ripple’s move is pointless.

He thinks the court’s punishments will be less harsh than Ripple’s $2 billion demand, but he doesn’t say how much a fine should be. 

Fagel thinks both sides will file appeals in the next few months, and the case could end up in the Second Circuit next year.

Possible Judicial Action

Former SEC lawyer James Farrell notes that non-attorneys often create summary charts to avoid privilege issues, suggesting that Ripple could have deposed other parties to obtain similar information. He criticizes Ripple’s failure to disclose their previous unsuccessful motion before Judge Netburn, viewing it as a credibility setback.

XRP’s Whale Activity Surges Amid the Ruling

Meanwhile, XRP is suffering due to the Ripple vs. SEC case. Its price fluctuated recently, but today, it showed a modest increase, trading at $0.513, up by 2.32% in the last 24 hours despite a 7% drop in the past week and an 18% drop in the last 30 days.

Alongside this, the transfer of a substantial 75 million XRP tokens occurred, sparking speculation among investors. Whale Alert reported three significant transactions, including a large transfer to centralized exchanges and a substantial sum received from Upbit.

These transactions, indicating buying and selling activity, have left investors uncertain about XRP’s future direction.

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