According to ex-attorney and Evernode XRPL co-founder Scott Chamberlain, neither the SEC nor the XRP community seems to have benefited from the current verdict. Chamberlain’s remarks followed a recent decision by Judge Analisa Torres, who granted and denied sections of both parties’ arguments (known as “Daubert” motions) equally.
Expert testimony is essential for Ripple and the SEC to back up their statements and proof about XRP. As the court approved and rejected sections of both sides’ motions, neither the SEC nor the XRP community seems to have benefited from this decision.
XRP Expectations Examined, Expert Excluded
One of the most important effects of the decision was the exclusion of Patrick Doody, the key expert witness. The SEC hired this firm to look into investors’ expectations for XRP.
Another unintended result of the Daubert issues was that SEC lawyers tried to have Judge Torres exclude John E. Deaton, an XRP community attorney, from participating in the litigation, partly because Deaton had revealed the identity of the SEC’s expert witness. The judge, however, did not prohibit Deaton but instead agreed with him that Doody should not testify in court on behalf of XRP holders.
Deaton also voiced his support for Chamberlin on Twitter. “I think the expert’s preclusion kills the SEC’s summary judgment petition,” he stated.
Similar views were expressed by XRP community attorney Jeremy Hogan, who said that the SEC must show that investors had a “reasonable” expectation of benefit from Ripple’s efforts and that Doody was critical in demonstrating this.
Judge Strikes SEC Expert
“And the Court just struck the SEC’s ONLY Expert Witness on that issue. So, how exactly can the SEC demonstrate “reasonable” reliance? “Who will testify?” Hogan wrote.
While the judge ruled in favor of the SEC on expert witness number 3, which Ripple had deemed “irrelevant and unreasonably prejudicial,” Hogan believes that “Expert #3’s opinion as to Ripple’s incentives and actions to influence the XRP price is relevant to the issue of reasonable expectation of profits.” However, he considers it a “weak sauce,” meaning it will be ineffective.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
