With vested interest in the ongoing legal brawl between the United States Securities and Exchange Commission (SEC) and Ripple Labs Inc growing, a law expert has shared key takeaways from the recent ruling from the presiding judge on the admissibility of expert testimony.
According to the Twitter user with the handle @MetaLawman, who claims to have handled a number of securities cases in the Southern District of New York, the judge has a good grasp of XRP and the technology that underpins it. The law veteran said the judge showed an excellent command of the legal issues, claims and defenses in the case and, as such, the decision is likely to be appealed.
1/ The Judge's rulings on admissibility are legally sound and unlikely to be disturbed on appeal--which is no surprise.— MetaLawMan (@MetaLawMan) March 8, 2023
The Judge demonstrates a good grasp of XRP and the related technology and excellent command of the legal issues, claims and defenses in the case.
The judge ruled that expert testimony would not be allowed, casting a major dent in the planned defenses of the SEC. In a bid to balance out the impact, the decision will also affect Ripple, which has its own expert it wishes to have testify.
"The Judge sustained Ripple's objection to expert testimony the SEC wanted to offer about the intentions of XRP purchasers," MetaLawMan tweeted, adding, "This is a setback for the SEC because the reasonable expectations of purchasers is a component of the Howey test for defining an investment contract."
Next steps in case
According to MetaLawMan, the directions of the current lawsuit have shown that the case might be drawing close to an end.
"Given the extensive legal analysis of claims and defenses that went into these rulings, I believe the Judge is probably close to issuing a decision on the summary judgment motions," he said.
Many in the crypto ecosystem have been awaiting this judgment, and it is bound to be a vital one for the industry as it will notably set a precedent.