The SEC opposed a nonparty’s last-ditch bid to submit evidence in the Ripple case because of a lack of jurisdiction and procedural failure.
Ripple claimed that the legal fight was actually over, but the SEC responded that it is still in the process of appeal.
Ripple’s ongoing legal battle with the SEC takes another twist as the US Securities and Exchange Commission has rejected an emergency bid by nonparty Justin W. Keener to participate in the legal case. The SEC’s motion filed in the United States District Court for the Southern District of New York argued that it should be denied based on the jurisdictional and procedural aspects.
🚨NEW: An odd filing just now in the @SECGov vs. @Ripple docket — an emergency request to “present decisive evidence in favor of the defendants and in favor of liberty for the American people.”
The letter, from a man named Justin W. Keener, doesn’t make clear what the so-called… pic.twitter.com/AQSDFIW6gi
— Eleanor Terrett (@EleanorTerrett) April 3, 2025
The agency stressed that, technically, the federal court cannot rule over the above case at the moment. The defense submitted that the issue now falls under the jurisdiction of the Second Circuit Court of Appeal. The commission also noted that Keener had failed to file an intervener’s motion before making an emergency motion. The SEC says that the procedural mistake involved makes the filing ineffective.
In addition to jurisdiction and process, the SEC also termed the request as unnecessary. It further noted that Keener could have forwarded the materials directly to Ripple’s legal team, which the court has held is capable of handling evidence. The commission also pointed out that the defense counsel for Ripple can assess the value of certain proofs on its own without appeals to the court.
Ripple Community Voices Concern Over Mixed Signals
XRP community members have responded aggressively to the SEC. Others opine that more profound work may be at play in the Ripple case. Also, one user remarked that the “urgency” of Keener’s filing tells a lot about the issue he seeks to address.
Legal expert Bill Morgan also has some concerns regarding the current state of the lawsuit. Morgan highlighted that he has found some inconsistencies in the aspects of Ripple and the SEC’s arguments and documents. Although Ripple has declared that the appeal process has ceased based on mutual consent, the SEC asserts that the case has not been withdrawn from the appellate stage.
Such an odd thing that Ripple say the Appeal and Cross-Appeal is settled but the SEC writes to Judge Torres that the matter is still on appeal. Settled but not quite over. pic.twitter.com/XFAKJAzUUP
— bill morgan (@Belisarius2020) April 9, 2025
Morgan pointed out that everything has not yet been legally concluded, even though there have been indications of a compromise. The implication is that while both sides have probably come to some sort of agreement, the case is still open if no court order or motion to dismiss has been filed.
Ripple’s $1.25 Billion Acquisition Signals Strategic Shift
However, this legal battle has not slowed down Ripple’s expansion of its operations. As CNF recently reported, it bought Hidden Road, a global prime brokerage firm, in a 1.25 billion-dollar deal. The acquisition puts Ripple right at the epicenter of institutional finance as it becomes the first crypto firm to own a multi-asset global prime broker.
Hidden Road provides institutional clients with clearing, financing, and prime brokerage services within digital asset, Forex, derivative, and bond products. It processes more than $3 trillion worth of transactions on an annual basis and caters to over 300 organizations. Ripple already targets financial institutions to boost the usage of its products and services in the traditional asset class industry.
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