Scott Chamberlain, a co-founder of Evernode XRP and a former attorney, has commented on the recent court hearing regarding the ongoing case between Ripple and the U.S. Securities and Exchange Commission (SEC).
Chamberlain stated that neither side has an advantage following Judge Analisa Torres’ decision to dismiss portions of both parties’ “Daubert” motions during the hearing on March 6, 2023. These motions were made to exclude the presentation of expert testimony. The US SEC had five experts and Ripple had ten.
Neither side gets everything it asked for because neither side had impeccable arguments for everything it wanted.
What leaps out is how sharp, rigorous, and utterly impartial Judge Torres is. https://t.co/KPdgDdZdPY
— Scott Chamberlain (@scotty2ten) March 7, 2023
Since both Ripple and the SEC rely heavily on expert testimony to support their arguments, the judge’s decision to grant and deny parts of both parties’ requests means that neither side has fully benefited from the decision. Chamberlain praised Judge Torres for being sharp, rigorous, and impartial.
During the hearing, Judge Torres excluded Patrick Doodle, the leading expert witness, and rejected the SEC’s attempt to exclude John Deaton, the attorney for the XRP community, from the case.
In a brief livestream on Twitter, Deaton stated that the outcome of the case would have significant implications, as a ruling in favour of the SEC could impact other tokens, including Ethereum.
Deaton also noted that the most significant victory for XRP holders was the exclusion of Patrick Doodle as an expert witness, as he will not be able to testify on why XRP holders bought the token. He praised the judge for implementing the law objectively and without bias and pointed out that the ruling is 60–40 in Ripple’s favour.
Jeremy Hogan, a partner at Hogan & Hogan, believes that the judge’s decision has removed the SEC’s only hope of proving that XRP holders had reasonable expectations of profits from Ripple’s efforts, and the SEC now needs to find a new witness to testify.
The SEC has to prove that you had a REASONABLE expectation of profits from Ripple’s efforts.
And the Judge just struck the SEC’s ONLY Expert Witness on that subject.
So, now, how the heck can the SEC prove “reasonable” reliance? Who will testify?
— Jeremy Hogan (@attorneyjeremy1) March 7, 2023
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