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- Nonparty Justin Keener submits shocking evidence that could disrupt the Ripple vs SEC legal battle.
- Ripple case faces new uncertainty as court receives explosive motion challenging SEC enforcement.
- Attorney Bill Morgan reacts as surprise filing threatens to derail Ripple’s potential settlement with SEC.
An unexpected filing has interrupted the ongoing dispute between Ripple and the U.S. Securities and Exchange Commission (SEC). Justin W. Keener, who is not part of the case, presented evidence he says is key to Ripple’s defense on May 28.
It directs the SEC to reconsider its enforcement policies and heavily disputes the Howey Test for determining what counts as security. According to Keener, the SEC’s actions harm American investors and weaken fair laws that should govern financial activity.
The SEC has now filed this objection based on procedures after objecting to Keener’s effort to take part. Still, Keener went ahead with his motion, pointing out issues that could challenge the main points being used by the SEC.
People have reacted to his involvement because he was recently fined $10 million for operating as a penny stock dealer without registering. Since he has been involved in the Ripple case, new tensions and delays have been introduced.
After the announcement, attorney Bill Morgan, who is an XRP supporter, commented on it. He brought attention to the ongoing twists and said people are eagerly waiting for the case’s development after the announcement of the SEC’s March 16 status report deadline.
This report forms part of the process to conclude the case after both parties asked for a 60-day halt. Ripple and the SEC had previously made a preliminary deal to reduce Ripple’s $125 million fine to $50 million. In addition, the judge and SEC decided to discontinue an injunction that had banned some of Ripple’s business activities.
New Filing Raises Stakes as Settlement Path Remains Unclear
Still, they asked Judge Analisa Torres for a ruling on the settlement, but she turned it down. As a result of the rejection, there was no progress, and it was not clear if the settlement would proceed.
As a result of Keener’s filing, the court needs to rethink key arguments that were not anticipated to come up again. USA Securities Congressman Paul Gosar expressed his discontent with the SEC’s use of the Howey Test, which could impact future securities law decisions.
The motion’s filing puts extra pressure on the SEC as it prepares for its upcoming release. Potentially, Ripple must rethink its strategy in light of these new documents. Many members of the XRP community are still closely watching the case as it enters another uncertain phase.
With only a few weeks left to the next deadline, Keener’s late motion has created an additional problem. Outsiders ‘ support for Ripple might lead to renewed interest in how the SEC proceeds with its case.
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