Lawyer Fred Rispoli analyzed important points of the trial.
Lawyer Fred Rispoli on twitter analyzed important points of the trial. He noted:
This is my summary on the expert witness order from J. Torres, which was very good for Ripple.
Big Takeaways: (1) I think the question “Did Ripple sell XRP like a security?” is going to trial but there is a chance (~10%) it does not. J. Torres hints (at 29) she is strongly considering the Blue Skies legal argument. (2) SEC took heavy losses, Ripple took minor ones.
Doody’s causation opinions were struck & Ripple’s experts are allowed to give UNREBUTTED causation testimony on “reasonable purchaser” expectations. SEC does have a little causation testimony allowed from Expert No. 3, but J. Torres even stated how Ripple can attack that.
SEC Expert No. 2 can’t opine about the materiality of “important disclosures” by Ripple. Another blow. Like Doody, Expert No. 4 cannot testify “how his personal experience provides him with a sufficient basis for speculating about how others would behave.” Expert No. 5 also… …cannot give causation testimony. All in all, one of the major elements SEC MUST prove (expectations of XRP purchasers) was almost–but not 100%–wiped out. (3) J. Torres is now giving 50/50 legal questions to Ripple. This is the result of SEC overplaying its hand and… …litigating like entitled brats. Example: SEC experts can’t opine on XRP purchaser expectations BUT Ripple experts can testify exactly to this from federal tax law and virtual currency perspectives. (4) J. Torres ruled that Ripple will be allowed to provide evidence… …of ALL the uses that XRP has. Didn’t SEC frequently whine that XRP had no use other than speculative investment? Whoopsie! (5) While I think case is going to trial, I do think J. Torres will rule that SEC has not put forth any substantive evidence that secondary sales of… ..XRP are securities. Don’t think she’ll rule that such sales are never securities, just that these aren’t before the Court. This type of ruling would put the burden on SEC to individually attack each secondary sale. Bask in the glory of the SEC’s failure!