Jeremy Hogan says XRP isn’t like an “investment contract” based on the Howey test. Some people on Twitter disagree with him. He thinks the SEC won’t appeal. The court says Ripple is connected to big buyers but not all XRP holders.
Jeremy Hogan, a respected lawyer who knows a lot about cryptocurrencies, has said again that the SEC can’t legally challenge the judge’s decision about whether XRP is a token.
On Twitter, Hogan explained an important thing: XRP doesn’t fit the definition of an “investment contract” according to a famous test called the Howey test. Because of this, he thinks the decision is final and can’t be challenged anymore.
Thanks @BlackberryXRP for the amazing hosting.
And a friendly reminder from the Judge: "XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract."
This is NOT subject to appeal. https://t.co/wJGIeLkBKB
— Jeremy Hogan (@attorneyjeremy1) August 11, 2023
Some people really respected what Hogan said, but others disagreed. One person on the platform said that the SEC can argue if tokens should be seen as securities from the start. Hogan didn’t change his mind, though.
He politely disagreed and mentioned that the SEC doesn’t seem interested in challenging the decision. This makes the argument maybe not that important anymore.
Examining the Appeal Process
In a recent talk on Twitter, Hogan explained something important. He said that the court’s view was clear: there was a recognized connection between Ripple and big buyers, but not all XRP holders or the bigger XRP community.
This is really important to think about. Showing that there’s a connection between different groups is harder than even one part of a famous test called the Howey test.
Hogan also talked about appeals in law. He said they’re not easy. To change a decision, the next court only looks at the proof from the first trial. They don’t add new stuff or listen to new witnesses. They only change things if the first decision is really bad.
The judge’s decision said that a lot of XRP transactions didn’t break rules for investors. The main thing the SEC talked about was if XRP is a security.
This decision comes from an old case involving the SEC and W.J. Howey Co. There are three parts to this case that talk about securities.
Before, Hogan said that the court’s way of looking at things can change. This is true especially when it comes to “other distributions.” You don’t always need to give something physical to sell securities.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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