XRP lawsuit takes new turn as Keener presents ‘decisive evidence’ before SEC deadline

The Ripple vs SEC lawsuit has taken another turn just weeks before the 16 June deadline for a court status update. Justin W.

Keener, a figure previously fined $10 million by the SEC for illegal penny stock trading, has returned with an emergency motion claiming he possesses “decisive evidence” that could alter the lawsuit’s outcome in Ripple’s favour.

bill morgan

@Belisarius2020

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I was expecting some filing in the SEC v Ripple case given what happened to the last motion that was dismissed two weeks ago, especially given that the 60 day period which the parties have before the SEC is required to file a status report with the court of appeals expires on 16

5:15 AM · May 30, 2025

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This marks Keener’s second attempt to file evidence in the high-profile crypto case, which centres on whether XRP qualifies as a security.

The XRP community and legal experts have reacted to the filing, with some questioning its legitimacy and others curious about the timing and content.

Despite expectations that the court will likely dismiss the motion, the filing has nonetheless reopened debates around the SEC’s approach to crypto enforcement and the legal classification of digital tokens like XRP.

Legal history behind Keener’s involvement

Justin Keener, who operated under the name JMJ Financial, was penalised by the SEC in 2023 for acting as an unregistered dealer and executing billions in transactions involving penny stocks.

The SEC alleged that Keener engaged in over 100 illegal offerings, prompting a fine of $10 million and restrictions on future financial activities.

Despite this background, Keener has now submitted a second unauthorised filing to the court, challenging the SEC’s foundational use of the Howey Test—the legal benchmark used to determine whether an asset qualifies as a security.

His motion reportedly includes a critique of the SEC’s enforcement history spanning the past 90 years, specifically targeting inconsistencies in how “investment contracts” have been interpreted.

The first filing by Keener was dismissed, and the SEC has previously raised concerns about why his PACER account—a court filing system—hasn’t been disabled despite the unauthorised nature of these motions.

This latest motion, however, has added a fresh layer of complexity to a case already seen as a bellwether for crypto regulation in the US.

Ripple challenges SEC on secondary market rules

Parallel to Keener’s motion, Ripple has submitted a letter to the SEC reiterating that XRP should not be considered a security in secondary market sales.

The letter refers to legal research by Lewis Cohen and a 2023 court decision, both of which argue that fungible digital assets do not carry the legal attributes of securities when traded publicly.

Ripple contends that the lack of regulatory clarity is harming both innovation and investor protection in the digital asset space.

The letter also references Judge Analisa Torres’ previous ruling that XRP does not qualify as a security in programmatic sales to the public.

This ruling was seen as a partial win for Ripple, although the broader implications for token issuers and exchanges remain unsettled.

The company has urged the SEC to revise its framework to align with evolving market dynamics, suggesting that existing laws are inadequate for addressing the complexities of digital assets.

Community divided over filing’s impact

The latest development has stirred debate among crypto enthusiasts and legal observers.

Lawyer and XRP advocate Bill Morgan noted that while he expected filings ahead of the June update, he did not anticipate the filing’s tone or its aggressive critique of longstanding legal interpretations.

Former SEC regional director Marc Fagel acknowledged the motion’s repeat nature and questioned the court’s leniency towards unauthorised submissions.

Although most legal experts do not expect the court to entertain Keener’s claims, the move has injected uncertainty into what was expected to be a relatively quiet lead-up to the court deadline.

The case has already drawn global attention due to its implications for the future of crypto regulation and the broader classification of blockchain-based assets.

Whether Keener’s evidence is acknowledged or ignored, the timing of the motion has added pressure on the SEC to clarify its regulatory stance and address growing calls for transparency.

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