According to the latest reports revealed from the Ripple lawsuit, it seems that the SEC failed to prove that XRP is a security. Check out the latest reports about this below.
Ripple lawsuit news is out
An important crypto legal expert says the U.S. Securities and Exchange Commission (SEC) has not proven that XRP is a security in the regulator’s lawsuit against Ripple Labs.
In a lengthy thread, attorney and XRP supporter Jeremy Hogan explained via Twitter why he believes the SEC has so far failed to prove XRP is a security.
Just to refresh your memory, SEC sued Ripple in late 2020 under allegations that the company sold XRP as an unregistered security.
“First, under the legislative definition of a security, XRP can only POSSIBLY fit under the definition of an ‘investment contract.’ It is not a stock or bond, etc… Even the SEC concedes this: ‘investment contract.’”
The #1 reason why XRP is not a Security (a thread).
First, under the legislative definition of a security, XRP can only POSSIBLY fit under the definition of an “investment contract.” It is not a stock or bond, etc..
Even the SEC concedes this: “investment contract.” pic.twitter.com/n9g7ZEos2n
— Jeremy Hogan (@attorneyjeremy1) April 9, 2023
Hogan made sure to explain the fact that the SEC has so far failed to prove that there was a contract of investment for investors in XRP, one of the key features of a security, according to the Howey Test.
“In the Ripple case, the SEC has failed to argue that there was an implied or explicit contract of investment.
Instead it argues that the purchase agreement is all that is required – and that is all it proves.
But that argument tears the ‘investment’ from the ‘contract’…”
He continued and said the following:
“As 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.”
We suggest that you check out the complete there in order to find out all the important details about the issue.