In a recent development in the Ripple versus SEC legal saga, a notable cryptocurrency expert and XRP community member, Ashley Prosper, has made predictions regarding the SEC’s motion to compel post-complaint discovery in the Ripple lawsuit. According to Prosper, Magistrate Sarah Netburn is expected to deny the SEC’s motion, with the best-case scenario for the regulatory body being the scheduling of a hearing before any final decisions are made.

The SEC, in a motion filed on January 11, sought to compel Ripple to provide two specific documents and respond to an interrogatory. The requested documents include Ripple’s audited financial statement from 2022 to 2023 and the contract governing the company’s institutional sales after the complaint was filed. Additionally, the SEC aims to have Ripple disclose the proceeds from its institutional sales of XRP.

Ripple swiftly opposed the SEC’s motion, presenting two key arguments. Firstly, Ripple contended that the SEC’s post-complaint requests are irrelevant and untimely. The company emphasized that fact discovery had already concluded in 2021, and reopening this phase could lead to prolonged litigation.

Ashley Prosper, known for his accurate predictions in the SEC v. Ripple case, expressed his belief that Magistrate Netburn would reject the SEC’s motion. He suggested that the SEC might, at best, secure a hearing before facing a denial of its requests.

It’s worth noting that Prosper gained popularity in the XRP community when he filed a Freedom of Information Act (FOIA) request in 2022. The request aimed to uncover the SEC’s communications with JP Morgan regarding Ripple and XRP. Allegations within the XRP community, including Prosper’s, suggested that private companies, such as JP Morgan, played a role in instigating the SEC’s lawsuit against Ripple. However, attempts to obtain the SEC’s communications with JP Morgan have yet to yield positive results.

The SEC, in a motion dated January 11, sought to compel Ripple to provide two critical documents and respond to an interrogatory. These documents include Ripple’s audited financial statement spanning 2022 to 2023 and the contract governing post-complaint institutional sales. Additionally, the SEC requested information on the proceeds of Ripple’s institutional sales of XRP.

Unsurprisingly, Ripple vehemently opposed the SEC’s motion, citing irrelevance and untimeliness as the primary reasons for the judge to deny the requests. Ripple argued that reopening the fact discovery phase, which had concluded in 2021, could lead to protracted litigation.

Prominent crypto expert and XRP community member Ashley Prosper weighed in on the matter, predicting that Magistrate Netburn is likely to deny the SEC’s motion to compel. According to Prosper, the best outcome the SEC can hope for is the judge scheduling a hearing before ultimately rejecting its requests. Prosper, known for his accurate predictions in the SEC v. Ripple case, previously gained popularity within the XRP community for filing a Freedom of Information Act (FOIA) request in 2022. This FOIA sought the SEC’s communication with JP Morgan concerning Ripple and XRP, but results remain elusive.

In a parallel observation, pro-XRP lawyer Bill Morgan questioned the motive behind the SEC’s request for post-complaint documents from Ripple. Morgan argued that the SEC’s motion aims to reopen litigation to assess whether Ripple’s post-complaint sales satisfy the Howey Test, a crucial factor in determining the classification of securities.

The anticipation surrounding Magistrate Netburn’s decision has sparked considerable interest within the cryptocurrency community, as stakeholders eagerly await the outcome of this latest legal development. The XRP community, in particular, has closely followed Prosper’s insights, given his track record of accurate predictions in the Ripple lawsuit.

As the legal battle unfolds, questions surrounding the SEC’s motivations and the potential implications for Ripple’s post-complaint sales continue to linger. Observers and participants in the cryptocurrency space are closely monitoring these proceedings, recognizing the broader impact this case may have on the regulatory landscape for digital assets.

In conclusion, the crypto expert’s prediction adds a layer of anticipation to the ongoing Ripple versus SEC legal saga. As the crypto community awaits Magistrate Netburn’s ruling, the outcome of this motion could significantly influence the trajectory of the larger debate surrounding regulatory oversight in the cryptocurrency industry.