Jeremy Hogan believes the SEC has failed in its arguments that XRP is a security. Besides, Jeremy Hogan is a partner at Hogan & Hogan law firm.
According to him, the SEC defining XRP as a security is wrong. The token doesn’t fit into the category of “investment contract”, which is the only one that should have defined it. This is because other definitions of security, such as bonds or stocks, don’t fit XRP.
Hogan believes the case is not about using the $1.3 billion that Ripple raised to fund the business, as the SEC argued. But it should be about the existence of an investment contract during the sale.
XRP is a security if it fits an investment contract
Hogan explained in a Twitter post that the SEC failed to establish a solid ground for its fight against Ripple legally. The SEC should have explicitly or impliedly demonstrated that XRP was an investment contract, but it didn’t. Instead, the SEC only argued that the purchase agreement made XRP an investment contract.
Hogan believes that basing the argument on the purchase agreement has separated the investment and the contract, making it a simple purchase and nothing else. As such, Ripple only has to transfer the assets to the investors without doing anything more.
“That argument tears the investment from the contract […] A simple purchase, without more, cannot be an ‘investment contract.’ it is just an investment (like buying an ounce of gold) as there is no obligation for Ripple to do anything except transfer the asset,” added Hogan.
If there was an explicit or implied contract of such sort, then SEC could win its argument. However, there wasn’t such a contract between Ripple Labs and investors of XRP during the sale negating the commission’s claims.
XRP Price Outlook In Recent Times
XRP price today is $0.5049, indicating a drop of 0.10% on the daily candle. Its market cap is also showing an increase of 0.54%, while its trading volume has grown by 15.28% in the same time frame. But XRP has tanked on its seven-day price gains, currently at a 1.98% loss as of press time.
The global market cap has grown 1.26% in the last 24 hours.
XRP has continually proven to be a resilient token amid the legal between Ripple Labs and the US SEC. Even though it was nowhere near its all-time high of $3.8419 on January 4, 2018, the token has grown by 17968.83% above its all-time low of $0.002802 on July 7, 2014.
The post Attorney Jeremy Hogan highlights why XRP is not a security appeared first on CryptoSlate.
