The outcome of the legal battle between Ripple and the SEC is eagerly awaited by the crypto industry. The stakes are high for her. But more and more, the chances of seeing her lose this war seem to be dwindling. A lawyer explains why.
Impossibility for the SEC to demonstrate that XRP is a security
Many want the standoff with the Securities and Exchange Commission (SEC) to turn to the advantage of the crypto firm Ripple. It’s a beacon of hope for the entire industry. Especially when we know the regulatory policy, considered not very pragmatic, that it has been undergoing for several months. A situation which has also made eminent players in this sector react in recent weeks.
Recently, Jeremy Hogan, a lawyer specializing in crypto issues, also spoke on the case Ripple against the SEC. While the outcome of this legal battle seems to be the subject of speculation and concern, the lawyer has a clear opinion on the matter.
For him, the weight that should tip the scales in favor of Ripple comes down to a simple legal fact. The SEC has still failed to demonstrate that XRP, Ripple’s native token, is a security.
It must be said that this is the heart of the debate. Because demonstrating that XRP is a security would immediately imply proving that it can be the subject of an investment contract. This involves establishing that the asset, such as a stock or a bond, can be the subject of an investment contract. What the SEC has so far failed to do.
“In the Ripple case, the SEC failed to argue that there was an implicit or explicit investment contract. Instead, she asserts that the purchase contract is all that is needed and that is all she proves,” says Hogan.
For the latter, the attempt to assimilate ” purchase contract “ And “investment contract” in this case is not legally binding. Because, he explains, “a simple purchase, without more, cannot be an investment contract”.
In fact, apart from transferring the asset, there was no other obligation on Ripple. The question that now remains is whether justice will embrace this vision of things. His decision will in any case be decisive for the evolution of the crypto industry.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
