Ripple submitted a petition refuting the testimony of an accountant at the Securities and Exchange Commission (SEC). It faced strong opposition from the Securities and Exchange Commission, and an accountant was designated as a summary witness. Ripple expressed its candid opinion by acknowledging that SEC accountant Andrea Fox was only a summary witness.
The SEC had previously leveled serious accusations against Ripple for raising $1.3 billion through an unregistered digital security service. If the SEC proceeds with punitive clawbacks and injunctions banning fintech companies from selling XRP to U.S. investors, the cryptocurrency industry will have a tough time.
The legal battle between the Securities and Exchange Commission (SEC) and Ripple has left cryptocurrency investors in a dilemma. U.S. regulators testified in court that the statements consisted of confidential expert testimony. Ripple has until May 2, 2024 to file a rebuttal to the SEC guidance, and the SEC has until May 6, 2024. Regardless of the outcome of the legal battle, the cryptocurrency market will be negatively affected by the legal battle between the SEC and Ripple. , either positive or negative.
Industry insiders said that the legal battle has intensified under the direction of the Securities and Exchange Commission. The legal conflict between U.S. financial institutions and Ripple has attracted the attention of investors around the world. Ripple said that the report written by the SEC’s accountants was neither an expert report nor a report based on professional experience. They said the opposition report applied basic arithmetic techniques to Ripple’s financial records to streamline the presentation of evidence. The Securities and Exchange Commission must disclose the identity, exhibits, and testimony of expert witnesses during discovery.
The results of this incident will have greater meaning and implications in the global cryptocurrency market. The Securities and Exchange Commission plans to file an appeal against the programmatic sale of XRP. Another court order considering cryptocurrency security would give regulators more legitimacy to impose regulations on the U.S. cryptocurrency market. It should be remembered that Coinbase previously filed an appeal against the court ruling. XRP has sent bearish price signals following an ongoing legal meeting between two high-profile stakeholders.
Ripple is known as a fintech company that processes cross-border remittances cheaply and quickly. XRP transactions can be settled and cleared in real time on the RippleNet network created by Ripple. The SEC complaint states that Ripple raised funds by selling XRP tokens as an unregistered security offering to investors in the United States and around the world.
Ripple has offered trillions of XRP in exchange for non-cash services such as labor and market making. The petition alleges that Ripple’s top executives participated in $600 million worth of private, unregistered XRP financial transactions. There are serious allegations and allegations against Ripple of orchestrating and promoting the sale of XRP. The suit also alleged that the defendants failed to register XRP sales and XRP offers.