Jeremy Hogan, partner at Hogan & Hogan law firm, has taken to Twitter to contest the United States Securities and Exchange Commission’s (SEC) assertion that Ripple’s XRP is a security. His arguments, which focus on the definition of an “investment contract,” have intrigued the crypto community and rekindled discussions on the ongoing lawsuit between the SEC and Ripple.
Investment Contract Debate
Hogan’s Twitter thread on April 9 highlighted his belief that XRP could only be considered a security under the definition of an “investment contract,” as it doesn’t fit other securities definitions like stocks or bonds. However, he argues that the SEC has failed to demonstrate an implied or explicit investment contract in its lawsuit against Ripple. Hogan asserts that a simple purchase, without any obligation from Ripple to do anything other than transfer the asset, cannot be deemed an “investment contract.”
The Howey Test and Ripple’s Stand
Ripple has long disputed the SEC’s claims, maintaining that XRP doesn’t constitute an investment contract under the Howey test—a legal test to determine if a transaction qualifies as an investment contract. Hogan’s argument echoes this stance, asserting that all “blue sky” cases, which the Howey case relies on for defining an “investment contract,” involved some form of a contract concerning the investment. According to Hogan, there was no such contract in the case of Ripple and XRP purchasers.
The issue is NOT whether Ripple used money from the sale of XRP to fund its business. The issue is whether the SEC has proven that there was either an implied or explicit “contract” between Ripple and XRP purchasers relating to their “investment.”There was no such contract. Jeremy Hogan
Jeremy Hogan’s legal perspective challenges the SEC’s claims against Ripple, asserting that XRP is not a security under the definition of an “investment contract.” As the lawsuit continues, the crypto community remains engaged, closely watching the proceedings and their potential impact on Ripple and the broader cryptocurrency landscape.
Source: https://coinpedia.org/ripple/ripple-news-legal-expert-challenges-secs-claims-insists-xrp-is-not-a-security/