Ripple Labs, the blockchain company entangled in a lawsuit with the United States Securities and Exchange Commission (SEC) over its remittance token XRP, has provided an update on the legal battle that has been ongoing for over two years. The company’s update highlights the March 6, 2023, order issued by Judge Analisa Torres, which determined which expert opinions from both the SEC and Ripple the court might consider during the summary judgment.
Expert Testimonies Struck from the Record
Ripple pointed out that the court removed the opinion of one of the SEC’s experts who testified on the reasonable expectations of XRP purchasers. Likewise, the testimony of another SEC expert who attempted to determine the cause of changes in XRP price was also struck from the record.
Cryptocurrency community members, including XRP enthusiasts, are eagerly awaiting Judge Torres’ summary judgment on the case. Predictions on when Judge Torres may issue a ruling have varied widely.
Notably, the March 31 prediction made by pro-XRP lawyer James K. Filan, who has closely followed the lawsuit, did not come true as many anticipated.
Summary Judgment Predictions
CryptoLaw founder attorney John Deaton recently predicted that the summary judgment on Ripple vs. SEC might come on or before May 6, 2023. Additionally, Ripple’s CEO speculates that the ruling could be issued within the first half of 2023.
In Ripple’s recent Q1 2023 financial report, the company says it now expects the summary judgment decision to arrive before the end of the year. However, it emphasizes that the timing of the summary judgment is ultimately up to the court.
Crypto Regulation Concerns and Ripple’s Sales Figures
Ripple also expressed concerns that the US approach to crypto regulation has continued to focus on regulation by enforcement instead of rulemaking. This can be seen as Coinbase and Paxos received Wells notices from the SEC, alleging various securities law violations and lack of registration.
SEC Chair Gensler issued a broad warning to yield-earning crypto platforms to come into compliance after Kraken closed its staking service, prompting Commissioner Peirce to denounce her own agency’s actions.
During the last quarter, Ripple’s total XRP sales, net of purchases, reached $361.06 million, compared to $226.31 million in the previous quarter. The company has continued to sell XRP only in connection with On-Demand Liquidity (ODL) transactions.
To ensure a sufficient supply for its growing ODL business, Ripple has sourced XRP from the open market since 2020, striving to minimize undue market impact with its purchases.
