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Ripple Presses Court to Dismiss SEC’s Expert Evidence

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9 months ago

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Ripple Labs Inc. has ramped up its court fight with the US Securities and Exchange Commission (SEC) by submitting a lengthy letter to substantiate its motion initially made on April 22, 2024. This motion seeks to eliminate the expert testimony submitted by the SEC that Ripple considers inappropriate.

The action by Ripple follows the SEC’s opposition letter dated April 29, 2024, in which it defended the admissibility of the testimony challenged.

Expert Testimony or Summary Evidence?

Ripple’s main dispute revolves around the Declaration of Andrea Fox, which it claims to be an expert testimony rather than mere summary evidence as contended by the SEC. Ripple argues that Fox’s declaration applies specialized accounting knowledge to evaluate financial statements and make inferences that surpass basic arithmetic. Ripple asserts that this clearly satisfies the requirements of an expert witness as outlined in Federal Rule of Evidence 702(a).

On the other hand, the SEC contends that Fox was to give a plain summary of the large amount of Ripple’s financial data, which does not require the substantial expertise typical of expert witnesses.

They claim that her analysis was mostly basic calculations designed to make the perception of the data and not to give expert opinions on financial issues.

Timeliness and Disclosure Disputes

Further important concern raised by Ripple is the timeliness of the Fox Declaration. Ripple accuses the SEC of failing to name Fox as an expert witness in the schedules stipulated by the court, which is done to guarantee that both parties have a period to react to evidence given during the court appearance.

Ripple insists that this inattention prevents them from fully conducting a cross-examination and detracting from the fairness of the trial process.

Meanwhile, the SEC opposes this argument by claiming that Fox did not need to be documented as an expert since she was a summary witness whose testimony was based on pre-existing records and simple calculations.

Precedents and Legal Interpretations

The reply brief of Ripple refers to a number of cases where courts have stricken declarations similar to Fox’s as undisclosed expert testimony disguised as fact summary. They contend that prior decisions are in favor of their stance that not properly classifying and disclosing the nature of a witness’ testimony can mislead both the opposing party and the court, thus justifying the exclusion of such testimony.

The SEC contradicts this view of the plaintiffs. It compares this case to other cases where summary witnesses were admitted without the need for a formal expert disclosure. They stress that the procedural environment and the content of the testimony dictate the requirement for these disclosures.

The result of this motion could have serious consequences in the upcoming litigation between Ripple and the SEC. If Ripple manages to get the Fox Declaration from the record, it could potentially limit the SEC’s ability to argue for specific penalties implied by the disputed calculations in Fox’s testimony. On the other hand, a successful declaration would reinforce the SEC’s case by providing a foundation for its claims against Ripple.

Read Also: Dropbox Hit With Massive Data Breach, Here’s What Happened

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

Ripple Expands US Footprint with New Licenses in New York and Texas

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32 minutes ago

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January 27, 2025

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Ripple has secured Money Transmitter Licenses (MTLs) in New York and Texas, marking another step in its U.S. expansion.

These licenses, crucial for offering compliant cross-border payment services, strengthen Ripple’s ability to provide financial institutions and crypto businesses with faster and more efficient payment solutions.

Ripple Secures Money Transmitter Licenses in Two Key States

According to a company statement, Ripple has gained approval for Money Transmitter Licenses (MTLs) in New York and Texas. These licenses enable Ripple Payments customers to access licensed versions of its cross-border payments platform, ensuring that transactions are managed entirely by Ripple on their behalf.

Ripple stated that New York and Texas have seen growing demand for real-time global payment solutions, particularly from banks and crypto businesses. The licenses add to Ripple’s extensive regulatory compliance portfolio, including more than 55 MTLs globally, of which 33 are in the U.S. Additionally, Ripple holds a New York BitLicense and a Limited Purpose Trust Company Charter.

Joanie Xie, Ripple’s Managing Director for North America, commented, “We’re seeing more interest from financial institutions and crypto companies ready to embrace the benefits of blockchain and digital assets.”

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Bitpanda, Crypto.com secures MiCA licenses

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2 hours ago

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January 27, 2025

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  • Bitpanda announced it secured approval as MiCA compliant from Germany’s BaFin.
  • Crypto.com revealed its full-MiCA license via X on Monday.
  • Other platforms have also secured the key regulatory registration following full rollout in December 2024.

Crypto.com and Bitpanda have received approval as Markets in Crypto Assets (MiCA) licensed exchanges, according to announcements from the two companies on Monday.

The Crypto.com team said it had received the full MiCA license. This comes just days after the exchange announced it secured in-principle authorisation from the Malta financial markets regulator.

Bitpanda said in a blog post it had received approval from the German Federal Financial Supervisory Authority (BaFin).

Exchanges get MiCA nod

Approval sees the exchanges add to the growing number of crypto platforms and service providers getting a nod for expansion across the European Union. This follows the rollout of full MiCA laws across the EU at the end of 2024, with multiple exchanges among those to reveal plans for compliance.

MiCA approval allows providers to offer their products and services in the European Economic Area (EEA), a major market for crypto.

Bitpanda deputy chief executive officer Lukas Enzersdorfer-Konrad said in a statement:

“This achievement is the result of a decade of commitment to compliance and regulation. With MiCAR, we are not just meeting the industry’s highest standards, we are setting them. Our focus now is on using this licence to accelerate adoption and growth across the European market.”

Bitpanda and Crypto.com join Boerse Stuttgart Digital, MoonPay, OKX and Hidden Road on the list of crypto platforms to have received MiCA licenses.

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US Crypto Projects Unlikely To See Zero Capital Gains Tax Benefit: Experts

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1 day ago

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January 26, 2025

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The crypto community is amazed by the reports of zero capital gains tax on U.S.-based crypto projects. The move comes amid Donald Trump’s decision to make crypto a national priority regarding crypto policy and regulations, starting with signing an executive order to develop the national digital asset stockpile. However, experts claim cryptocurrencies and crypto projects developed in the United States may not see zero tax benefits.

Why Is Zero Capital Gains Tax on Crypto May Not Be Possible

Dennis Porter, CEO and co-founder of Satoshi Action Fund, in an X post on January 26 said removing capital gains on crypto entirely depends on US Congress. He asserts it is highly unlikely that the US Congress will include such a proposal in a tax bill in the near term.

He added that the primary obstacle is the significant loss in government tax revenue, making the proposal look difficult to approve currently. The primary agenda for the Trump administration is tax cuts and any policy that threatens those cuts will be sidelined.

The zero income tax on crypto presents significant practical, legal, and economic challenges. The Trump administration will review the anticipated reduction in tax on US-based crypto but not vice-versa, which could be detrimental to equities, bonds, and other financial instruments.

Eric Peterson, policy director at Satoshi Action Fund, said:

Capital gain taxes on crypto is not going to 0% folks. Congress makes tax policy, not the president. Work towards attainable goals like the de minimis exemption.

Recently, John Deaton discussed the ambiguity surrounding U.S.-based cryptocurrency projects. He questioned whether projects with operations or foundations abroad, such as Solana and Tezos, would meet the requirements for tax exemptions.

The Crypto Industry Must Lobby for Meaningful Steps Forward

Dennis Porter believes the crypto industry can take meaningful steps forward to reduce tax obligations. He suggests securing a de minimis exemption of $200 for Bitcoin and other digital asset transactions.

“This proposal aligns with the existing $200 exemption for foreign currency transactions. It’s a far more attainable and reasonable goal, with minimal impact on Trump’s ability to renew his tax cuts,” he added.

Americans who live off of Bitcoin and digital assets should not have to report every small transaction, such as buying coffee, meals, or groceries, for tax purposes. This is an overly burdensome task and it’s time we pursue this simplification of the tax code.

Porter reveals that the U.S. Congress has bipartisan support for this idea and it could become a reality with de minimis exemption. In order to be successful, it must be tied to inflation and bipartisan support that balances innovation and fairness.

Crypto Market Bullish on Zero Crypto Gains Tax Proposal

The crypto market participants are bullish on the US-based crypto and likely zero tax on these crypto as the Trump administration introduces pro-crypto policy and regulations.

Eric Trump confirmed advocating for zero capital gains tax for the U.S.-based crypto projects. ‘Made In USA’ crypto such as XRP, Solana (SOL), Hedera (HBAR) and others will benefit from tax cuts. As per CoinGecko, the US-based crypto market cap is over $560 billion.

Meanwhile, Eric Trump hinted at a 30% capital gains tax on non-US crypto projects. As per experts, this sharp divide is designed to attract global crypto investments to the United States.

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