XRP Legal Battle Heats Up as SEC has now Rejected Ripple’s Motion to Strike

SAN FRANCISCO, Monday, May 6, 2024 – The legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs Inc. has intensified after the SEC filed an opposition brief countering Ripple’s attempt to remove key evidence from the case. ¹

Ripple had filed a Motion to Strike, requesting the court disregard testimony from SEC accountant Andrea Fox and supporting exhibits.

Ripple vs DOJ can be seen here.

Ripple argued that this information constituted undisclosed expert testimony. However, the SEC vehemently disagrees. In their opposition brief, they categorize Ms. Fox’s role as a “summary witness” providing factual information, permissible under the Federal Rules of Evidence.

The disputed evidence centers on Ripple’s XRP sales to institutional investors after the SEC filed its lawsuit in December 2020.

The SEC contends these sales continued to violate U.S. securities laws.

Ripple counters that post-complaint sales were conducted exclusively through on-demand liquidity (ODL) transactions, designed to protect buyers from losses and prevent profits.

Additionally, Ripple argues they ensured investors qualified as accredited investors, exempt from certain securities regulations.

The outcome of the court’s decision on Ripple’s motion to strike holds significance, but the ultimate fate of the case rests on the broader legal question of whether XRP is a security.

Judge Analisa Torres previously ruled in July 2023 that programmatic sales of XRP did not qualify as securities.

The SEC is currently appealing this decision, with a final resolution potentially impacting the broader cryptocurrency industry.

Sources