Lawyer Jeremy Hogan has given his opinion on the status of XRP as a security. He believes that the United States Securities and Exchange Commission (SEC) has failed to legally demonstrate that XRP is a security.
Jeremy Hogan’s Arguments Against XRP’s Security Status
While many are chomping at the bit, hoping for fair cryptocurrency laws in the United States, the Ripple affair continues to be talked about as if it were the latest installment in a thriller series.
the lawyer Jeremy Hogana cryptocurrency connoisseur, recently shared his thoughts on the status of XRP.
According to him, the SEC failed to legally demonstrate that XRP is a security.
Hogan explains that XRP could only be considered a security under the definition of an “investment contract.” It does not match other definitions of a security, such as stocks or bonds.
But has the SEC really proven the existence of an implicit or explicit investment contract between Ripple and XRP buyers? Hogan thinks not.
He points out that the SEC relies solely on the idea that the purchase contract is all that is needed to qualify XRP as a security. However, Hogan disagrees with this approach. He compares it to the purchase of an ounce of gold: a simple purchase cannot be considered as an “investment contract”. In fact, there is no obligation for Ripple to do anything, except to transfer the asset.
Ripple has long disputed the SEC’s claim based on the Howey test. According to Hogan, the crux of the matter is not whether money from the sale of XRP is used to fund Ripple’s business, but rather whether there is an implicit or explicit “contract” between Ripple and XRP buyers regarding their “investment”.
Judge Torres’ decision in the Ripple v. SEC case remains eagerly awaited and could have major implications for the future of Ripple and other cryptocurrencies.
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