SEC vs. Ripple: A 90-Year Howey Test Rant Derails Expectations

Just when things seemed to be slowing down in the long-running Ripple vs. SEC legal drama, a surprise court filing has stirred the pot again—this time, not from the SEC or Ripple, but from an unexpected third party.

Pro-crypto lawyer Bill Morgan took to X (formerly Twitter) to share his reaction, saying:

“I was expecting some filing in the SEC vs. 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 June.”

He also added, “I was not expecting this filing. An individual’s multi-page rant against the Howey test, its interpretation by the courts, particularly in relation to the term investment contract and against the SEC covering a period of 90 years. This case never fails to entertain (or end).”

The unexpected filing came from an interested individual, who claimed to hold data and information believed to be decisive evidence to settle controlling questions and matters central to 10 years of nightmarish chaos thrown upon all of us unsuspecting Americans.

This person submitted what can only be described as a lengthy, emotional takedown of the Howey test—the legal standard courts have used for decades to determine what qualifies as a security. The filing challenges the test’s interpretation and how it’s been applied in the Ripple case, as well as broader SEC practices.

While it’s unclear how seriously the court will take this unsolicited rant, its timing added a new twist to an already complicated case. The crypto community had been expecting the SEC to submit a revised request for an indicative ruling, aiming to lift the injunction that currently prohibits XRP sales to institutional investors, and to potentially reduce the $125 million penalty imposed earlier.

Instead, this unusual filing sparked fresh uncertainty, shaking investor confidence and sending XRP’s price to its lowest level since May 8.

The Ripple vs. SEC case, which began in December 2020, continues to unfold with no clear end in sight. Even as deadlines approach—like the June 16 status report expected from the SEC—the case keeps surprising everyone watching, especially those in the XRP community who are hoping for clarity.