Pro-XRP Lawyer Predicts Ripple’s Partial Win in SEC Lawsuit Will Stand
Attorney Jeremy Hogan, who is supportive of Ripple and XRP, suggests that if the U.S. Securities and Exchange Commission (SEC) wins a potential appeal in the Ripple case, the initial partial victory for the payments firm will likely remain valid. Here are the key points:
1. SEC appeal targets Ripple’s sales on exchanges: Hogan states that the SEC’s possible appeal is focused on whether Ripple’s sales on exchanges violate securities laws. It is not questioning the classification of XRP itself as a security.
2. Ripple’s use of exchanges for sales could be affected: If the SEC wins the appeal, Hogan believes Ripple would no longer be able to use exchanges to facilitate sales. However, he predicts that exchanges would still keep XRP listed as long as they can confirm that Ripple is not selling the asset.
3. Nature of XRP remains unchanged: Hogan emphasizes that the lawsuit only pertains to Ripple’s programmatic sales and has no effect on XRP that Ripple is not selling. He argues that XRP itself is not a security.
4. Ripple may appeal if SEC’s appeal is granted: Hogan suggests that if the judge grants the SEC’s appeal, Ripple will appeal the issues it lost as well.
5. SEC lawsuit background: The SEC sued Ripple in late 2020 for allegedly selling XRP as an unregistered security. While the court ruled in favor of Ripple’s automated sales not being securities transactions, it agreed with the SEC that direct sales of XRP to institutional participants constituted a securities offering.
Hot Take
If the SEC does win its potential appeal, it could have implications for Ripple’s ability to use exchanges for sales. However, the core question of whether XRP itself is a security remains. The outcome of the case will likely have a significant impact on the regulatory treatment of cryptocurrencies.
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