The crypto legal specialist believes that Ripple will emerge victorious from its battle with the Securities and Exchange Commission, claiming a total victory in the XRP lawsuit.
This dispute began in late 2020, when the U.S. regulator accused Ripple of selling XRP as an unregistered security.
Jeremy Hogan, an attorney with 157,000 YouTube subscribers, believes that Ripple will emerge triumphant at summary judgment. He states that XRP was not traded as a security and supplies two reasons for this.
The crypto legal expert states that Ripple had no legal responsibility to XRP purchasers once the sale was finished.
Hogan references an amicus brief from Paradigm Operations to back his opinion. The brief was examined by one of their law firms, which discovered that in 266 legal cases involving security violations, there was no legal connection between the issuer and the investor providing capital.
This was expressed on the second page of the brief, which reads:
“A comprehensive analysis of federal and appellate law reveals that no authority exists to support the SEC’s attempt to transmute the Howey analysis of an investment contract transaction into a conclusion about the underlying asset. In every application of Howey where an investment contract was found, there was some identifiable legal relationship between an ostensible issuer and the investor providing investment capital.”
Hogan points out that the law requires an “investment contract” and not a “sale contract.” He explains that Ripple distributed XRP without any legal obligation to do anything more, which is the sale of an asset and not a security.
He then concentrates on the second part of the Howey test, which states that a security is present if there is a common enterprise. The crypto legal specialist states that the SEC has three significant issues related to it.