U.S. SEC files a new motion in the Ripple case, opposing an emergency request by a nonparty to present decisive evidence in favor of the defendant. 

The securities regulator submitted the motion yesterday in the Southern District of New York (SDNY), asking the judge to deny the nonparty’s request. 

Recall that a nonparty, Justin W. Keener, filed a letter in the Ripple case last week. The nonparty made an emergency request to present evidence favoring Ripple against the SEC and the liberty of Americans. 

SEC Opposes Request in 3 Arguments 

Days after the nonparty’s request, the SEC filed a reply opposing the presentation of this so-called decisive evidence. The SEC presented three major arguments stating why the court should deny the request. 

First, it contended that the New York federal court no longer has the jurisdiction to grant the emergency request. According to the SEC, the Ripple case is currently under appeal in the Second Circuit, granting the appellate court authority over the request. 

Second, the SEC claimed Keener did not file his motion to intervene correctly. The commission highlighted a procedural error regarding how the nonparty attempted to support Ripple in the case. It noted that Keener should have first requested to intervene in the case before his April 3 emergency request motion.

Third, the regulator argued that the emergency request was unnecessary. According to the commission, Keener could have shared the evidence with Ripple’s legal team, which the court had already found competent. Therefore, Ripple’s legal team can decide on its own whether the evidence could support its case against the SEC.  

Overall, the SEC challenges the necessity of the request, the court’s jurisdiction to entertain the matter, and the procedural legitimacy. Consequently, it asked the New York federal court to deny the request.  

XRP Enthusiasts React 

The recent development in the Ripple case has elicited reactions among XRP community members. 

Community member Danny speculated that something big might be unfolding behind the scenes in the Ripple case as the emergency request ‘has a lot of urgency.’ 

Meanwhile, top legal expert Bill Morgan highlighted a contradiction in how the SEC and Ripple describe the case’s status. Attorney Morgan noted that while Ripple claims the appeal and cross-appeal are over, the SEC has informed Judge Torres that the lawsuit is still under appeal. 

According to Morgan, the case may have been settled, but it’s not over. This suggests that although the parties may have settled, as revealed by Ripple, the fact that they have not gone through the formal judicial process indicates that the case is not entirely over. 

Current Status of Ripple Case 

Recall that Ripple claimed the SEC has agreed to drop its appeal. Ripple also dropped its cross-appeal in exchange for a reduced fine and dismissal of the court’s permanent injunction, pending the SEC commissioners’ vote. 

However, since Ripple made these statements, the SEC has not publicly affirmed plans to drop the appeal. Experts suggest that the SEC would issue a statement after its commissioners approve the appeal dismissal decision at a closed-door meeting. 

Since Ripple’s announcement, the SEC has held two closed-door meetings without issuing a statement on the Ripple case. This silence continues to spark concerns among XRP enthusiasts, with some suggesting that the case is not yet over.