The SEC is appealing the recent court ruling in the Ripple case, although it lacks hard evidence to support its claims. The agency is struggling to prove that XRP buyers expected profits based on Ripple's efforts.
Judge Torres ruled that Ripple's actions, including the sale of XRP held in escrow, did not have a sufficient impact on price movements to create investor expectations of profit.
The SEC's case now hinges on convincing the appeals court that these software buyers wanted to profit from Ripple's operations. The SEC wants to challenge that point, even though the court rejected its own expert testimony on the issue.
The expert opinion that was key to the SECâs argument was rejected for lack of reliable methodology. The defendants successfully argued that the expertâs assumptions about what a âreasonable buyer of XRPâ would believe were speculative and not based on fact. This means that the SEC does not have reliable expert testimony to support its claims.
Additionally, the SECâs appeal is undermined by evidence from actual XRP investors. The lawsuits show that these investors did not rely on Rippleâs efforts to purchase XRP. Many were unaware of Rippleâs initiatives or their impact on XRP. Despite this, the SEC still tries to argue that a âhypothetical reasonable investorâ would expect to profit from Rippleâs actions based on old blog posts or marketing materials.
Plus, Rippleâs efforts to develop products like the On-Demand Liquidity (ODL) software that uses XRP for cross-border transactions have not really impacted the price of XRP. This was stated by real members of the XRP community. For these investors, Rippleâs statements did not influence their decision to invest.
The SEC is trying to convince the Second Circuit, but its case appears to be missing important elements. Their expert testimony was rejected, and there is little evidence from actual investors to support their claims.
Now the SEC will have to rely on a legal fiction about a hypothetical investor, hoping to prove that this fictitious person expected to profit from Ripple's efforts, despite the lack of concrete evidence. đ€*** Support the author with your favorite XRP token: rJu2tsxQngnBi2n1UYj3WoDt4f8Pmnd5wz Memo 932390456#XRP
