Ripple responded by challenging the testimony of the Securities and Exchange Commission's accountant, which was met with strong opposition from the SEC. The accountant was considered a summary witness by Ripple. The SEC had previously accused Ripple of conducting an unregistered digital security offering, raising $1.3 billion. If the SEC proceeds with punitive disgorgement and an injunction banning Ripple from selling XRP to American investors, it could have significant implications for the cryptocurrency industry.

The ongoing legal battle between Ripple and the SEC has left crypto investors in a quandary. The SEC has testified that the statement includes undisclosed expert testimony, prompting Ripple to file a counter by May 2, 2024, while the SEC can submit a rebuttal by May 6, 2024. Regardless of the legal outcome, the crypto market is expected to be adversely affected by the SEC-Ripple legal dispute.

Industry insiders note that the legal clash has intensified following the SEC's directive, attracting global investor attention. Ripple contends that the SEC accountant's report does not qualify as expert testimony and merely applies basic arithmetic skills to Ripple's financial records. The SEC must disclose expert witness identity, exhibits, and testimonies during discovery.

The outcome of the case holds significant implications for the global crypto market. The SEC plans to challenge the programmatic sales of XRP, potentially strengthening its position in regulating the American crypto market. Ripple's ongoing legal battle with the SEC has contributed to bearish price signals for XRP.

Ripple, known for its fintech services facilitating cross-border money transfers, is accused of selling XRP tokens as unregistered security offerings to investors globally. The complaint alleges that Ripple executives engaged in personal, unregistered XRP financial transactions totaling $600 million. Serious charges include orchestrating and promoting XRP sales without proper registration.