Renowned pro-XRP lawyer Bill Morgan weighs in on the unending twists and turns in the lawsuit between the SEC and Ripple.
A nonparty, Justin W. Keener, filed a motion in the lawsuit on May 28, submitting a lengthy document tagged as ‘decisive evidence’ in favor of Ripple and Americans.
Nonparty Submits Decisive Evidence
This so-called evidence criticized the SEC’s overall enforcement approach and the Howey test, a long-standing securities test used to interpret what transactions constitute investment contracts. Recall that Keener first requested to present the decisive evidence in the Ripple lawsuit last month.
At the time, the U.S. SEC requested that the court deny the request, emphasizing that the nonparty had filed the motion incorrectly. However, Keener continued with the submission, criticizing the Howey Test and the SEC’s enforcement approach.
It bears mentioning that the SEC recently sued Keener for operating as an unregistered dealer of penny stocks. As a result, a federal court ordered him to pay a fine of $10 million for violating federal securities law.
Pro-XRP Lawyer Reacts
His recent filing sparked reactions from XRP community members, with Attorney Morgan highlighting the endless twists in the case.
In an X post today, Attorney Morgan suggested that he has been looking forward to a new filing from the parties, especially after Judge Torres denied an earlier request for an indicative ruling on the proposed settlement agreement.
His anticipation for a new filing grew due to the looming deadline of June 16, when the SEC is expected to submit a status report to the Second Circuit.
Recall that the SEC and Ripple jointly requested a 60-day pause of their appeal in the Second Circuit. This request allows them to work on a potential resolution of the case following an initial settlement agreement.
Notably, the parties agreed to withdraw their appeals under the condition that Ripple pay a fine of $50 million instead of $125 million. They also agreed to dismiss the injunction imposed on Ripple’s business.
With the 60-day stay granted, the SEC and Ripple requested an indicative ruling on the agreement. However, Judge Torres denied the request two weeks ago, leaving many pondering the next line of action.
Twists in the Ripple Case
Many assumed that the parties would either re-file their request for an indicative ruling in a New York federal court or issue a status report to the Second Circuit. However, a nonparty submitted a lengthy document tagged as decisive evidence in support of Ripple and Americans.
Following the recent filing, Attorney Morgan noted that the Ripple lawsuit never fails to entertain, suggesting that the case is filed with drama stalling its resolution.
For perspective, the lawsuit, which the SEC announced in December 2020, has continued to linger to date. Whenever there is an indication that the lawsuit is nearing an end, a new development emerges, extending its resolution.
A case in point was the SEC’s appeal of Judge Torres’ decision two months after her final verdict in August 2024. As the parties work toward a resolution, Keener has now submitted a new filing that could delay the case’s conclusion.
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