A new development has surfaced in the ongoing lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) following the submission of a fresh document by a nonparty.
On May 28, Justin W. Keener filed a motion presenting what he described as “decisive evidence” in favor of Ripple and U.S. investors.
The filing challenges the SEC’s enforcement strategies and questions the relevance of the Howey Test, which has been a central point in the legal battle. Despite running into procedural issues with the SEC, Keener filed the motion despite having already been fined $10 million by the federal court for penny stock dealing.
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According to pro-XRP lawyer Bill Morgan, the new filing adds another unexpected layer to the case. On social platform X, he explained that the situation keeps developing, mainly because the SEC has to respond to the court again on June 16.
Ripple and the SEC recently requested a 60-day pause in their ongoing appeal at the Second Circuit. The reason for this request was to give both parties time to finalize a settlement that would see Ripple’s penalty reduced to $50 million and the previous injunction dropped.
Filing Adds Tension Ahead of Key Legal Deadline
The evidence submitted by Keener is not officially part of the case record, as it comes from a nonparty. However, the length and content of the document have sparked reactions from the XRP community. Keener criticized the SEC’s interpretation of securities laws and claimed that the agency’s use of the Howey Test lacks consistency.
The court had earlier denied Ripple and the SEC’s request for an indicative ruling on their proposed settlement. Since then, anticipation has grown around the next move. Keener’s filing, although not requested by either party, could influence court discussions or prolong the process further.
Attorney Morgan expressed that he had been anticipating a new update in the case, especially with the recent denial of the indicative ruling. He also suggested that unexpected actions like Keener’s submission make the case difficult to conclude swiftly.
Since the SEC’s lawsuit was first announced in December 2020, the case has seen several setbacks and resurgences. Each potential breakthrough has been met with new challenges that continue to push the expected timeline for resolution.
Conclusion
With Keener’s recent filing now added to the mix, attention shifts toward the SEC’s status report due on June 16. As parties move toward a possible resolution, this new evidence may influence the court’s perception and the next legal steps.
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