SEC Rejects Ripple Evidence

SEC Opposes New Evidence in Ripple Lawsuit

The Securities and Exchange Commission (SEC) has rejected a request to introduce new evidence in its ongoing lawsuit against Ripple Labs. This follows a petition submitted by Justin W. Keener last week seeking to support Ripple's defense. The SEC, in a letter to Judge Analisa Torres on April 8, 2025, outlined three key objections.

• Appeal Stage: The SEC argues the district court lacks jurisdiction to consider new evidence while the case is under appeal in the Second Circuit.
• Procedural Violation: Keener allegedly failed to file a motion to intervene, a necessary step for introducing outside evidence.
• Lack of Purpose: The SEC believes Ripple should present any relevant new evidence, not a third party.

The SEC has formally requested Judge Torres to deny the petition. Judge Torres will ultimately decide whether to admit the new evidence.

Ripple's Ongoing Legal Battle

This case, ongoing since 2020, centers on the SEC's claim that Ripple raised over $1.3 billion from unregistered XRP sales. The SEC considers XRP an unregistered security, a classification with significant implications for the cryptocurrency industry. A partial victory for Ripple in 2023 saw Judge Torres ruling XRP was not a security when sold to retail investors on exchanges, but was a security when sold to institutional investors.

XRP Trading Volume Remains High

Despite the legal uncertainty, XRP's trading volume remains robust. Crypto analyst Ali Martinez reported a monthly trading volume exceeding $21.62 billion in March 2025. This highlights continued investor interest in XRP, even amidst the ongoing regulatory battle.

The Bigger Picture

The outcome of this case will have far-reaching consequences for cryptocurrency regulation and the definition of digital assets in the United States. Both the SEC and Ripple await Judge Torres’ decision on the admissibility of new evidence, a decision that will significantly impact the future trajectory of the case and the broader crypto landscape.

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