In a significant development, a notable prominent attorney in the cryptocurrency realm, Jeremy Hogan, has restated his firm position. He believes that the U.S. Securities and Exchange Commission (SEC) cannot pursue more appeals on XRP’s legal classification.
On Twitter, Hogan pointed out a key observation. The qualities of XRP don’t meet the standards for being an “investment contract” in the widely known Howey test. As a result, Hogan is certain that the verdict stands strong and can’t be challenged further.
Hogan’s viewpoint received much praise, but some disagreed. Someone online said the SEC can still challenge how tokens are seen as securities. Hogan wasn’t bothered and politely disagreed. He emphasized the SEC’s seeming disinterest in disputing the verdict, which could make the ongoing discussion less important.
Legal Perspectives on XRP Classification and Court Interpretations
On a recent Twitter space, the prominent attorney, Hogan explained that the court’s view was clear. While there’s a connection between Ripple and buyers, it doesn’t automatically include other XRP holders or the larger “XRP ecosystem.” This is important, especially when we think about the challenge of establishing a common enterprise, which is even harder than the third part of the Howey test.
This viewpoint is very important, especially when we think about the complex task of creating a common business. This is even more challenging than the third part of the Howey test.
Dealing with legal appeals is a confusing task, as emphasized by Hogan. Changing a decision requires the higher court to carefully examine the evidence from the first trial. New ideas or new witnesses can’t be considered in this review. The higher court only steps in when there are clear problems with the original decisions.
Judge Analisa Torres clearly stated that a significant number of XRP transactions followed the rules meant to protect investors. The main point the SEC argued was whether XRP should be considered a security.
This separation goes back to an old example: a three-part test for deciding if something is a security. This test was created by the United States Supreme Court in a past case involving the SEC and W.J. Howey Co.
Hogan mentioned that the court’s understanding can change, especially about “alternate allotments.” It’s important to note that an actual exchange isn’t always needed for something to be considered the “selling” of securities.
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