The United States court refused the testimony of the SEC’s main witness, and Ripple filed a “reasonable notice” defense according to the latest court decision

On March 7, the ongoing legal struggle between the United States Securities and Exchange Commission (SEC) and Ripple Labs continued with a new court ruling. The court has now ruled on the motion of both parties, and the expert testimony will not be considered in summary judgment and trial. In the judgment, Judge Analisa Torres approved part of the motion and rejected other motions. Neither the plaintiff nor the defendant gained the upper hand. However, one of the key results of the ruling was to exclude Patrick Doody, the No. 1 expert, from testifying on the view of a reasonable buyer of Swiss coins. It is noteworthy that the SEC had previously hired Doody to analyze the expectations of token buyers, but the judge now approved Ripple’s motion to exclude his testimony. Without Doody’s testimony, it is unclear how the SEC will prove that investors have “reasonable” profit expectations for XRP.

Interpretation of this information:

The legal battle between the SEC and Ripple Labs has taken another turn, with a new court ruling that expert testimony will not be considered in summary judgment and trial. The ruling approved part of both party’s motions, indicating that neither the plaintiff nor the defendant gained the upper hand. However, the exclusion of Patrick Doody, the No. 1 expert, from testifying on the reasonable expectations of token buyers is a significant outcome. The SEC had previously hired Doody to analyze investors’ expectations, but Ripple’s motion to exclude his testimony was approved. This decision raises questions about how the SEC will prove that investors have reasonable profit expectations for XRP.