The SEC opposes Ripple’s Motion to Unseal Experts’ Docs

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Key Takeaways

  • The Securities Exchange Commission and cryptocurrency payment company Ripple are at odds once again, with Ripple accusing the SEC of taking an “extreme approach” by attempting to stifle expert testimony.
  • The motion would shield crucial material from public view in the ongoing litigation over potentially unregistered securities.

The new events in the legal dispute between the SEC and Ripple Labs are still ongoing. The SEC filed an move to exclude (or restrict) expert testimony last week. The Ripple team agreed to the motion and also submitted a counter-move.

The Securities and Exchange Commission has taken an unparalleled step to conceal the identities of its expert witnesses, Ripple Labs Inc said in a filing in the agency’s closely watched case involving the cryptocurrency XRP. 

XRP fell 5.66 percent on Sunday, ending the week up 1.28 percent at $0.3251. Things were not looking up at the start of this week. For the second session in a row, XRP capitulated to crypto market forces.

Defence attorney James Filan provided additional updates from the SEC v Ripple case on Monday. Following expert testimony filings in late June, the focus has shifted back to expert evidence and perhaps the most subsequent amici motion.

Filan tweeted the latest court decision overnight, saying,

“In connection with the amici Motion to Participate in the Daubert proceedings, Judge Torres granted in part and denied in part the parties’ requests to seal documents.” Proposed redactions must be submitted by July 15, 2022.”

Meanwhile, the SEC states that it has no objections to the proposed schedule. It does, however, wish to respond to the defendant’s claims. It was also stated that the parties engaged in extensive negotiations last week regarding the confidentiality of the specialists and their materials.

According to the motion, the commission proposed a similar schedule to the Ripple and defendants. The accused, however, rejected this and continued to file their motions on the public docket on July 12.

The SEC accuses Ripple and its current and past chief executives of executing an unregistered $1.3 billion securities offering by selling XRP, which the company’s founders established in 2012. The experts are crucial to the SEC’s case.

Attorneys who specialise in cryptocurrencies are closely monitoring the case because it may have legal repercussions for other digital assets.

The SEC defended itself in response to Ripple’s claim that it had avoided the public scrutiny of its experts. The Commission made clear that all they wanted was a few extra days to thoroughly examine the briefings.

The defendants’ suggested schedule, which would be put on the public docket, has, however, been submitted by the regulatory body and is suitable given the situation. The SEC anticipates that most of the recommended closing requests will be accepted by both parties.

Prior to disclosing the court decisions, Filan also revealed a letter submitted to the courts in connection with SEC efforts to conceal expert testimony from the general public, which stated:

In order to make it apparent what the Defendants wish to oppose, the authority anticipates that the Court will guide this matter. The SEC has submitted two applications to the courts that are linked to this matter for decision. The information pertaining to the expert witnesses’ evidence is sealed. Although it was noted that they frequently face threats and abuse. The verdict of the case might significantly affect investor sentiment for XRP and the larger crypto market.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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